Skip to comments.What Can We Expect Next from the Bernanke Fed?
Posted on 10/18/2010 11:08:18 PM PDT by citizenredstater9271
On October 15, Ben Bernanke spoke at the Boston Fed's conference, "Monetary Policy in a Low-Inflation Environment." His remarks were long and ponderous and consisted mostly of "Fedspeak" along with seeming excerpts from a typical intermediate-macroeconomics textbook. He rehashed the Fed's statutory mandate of maximum employment and price stability which comes from the Keynes-inspired Full Employment Act of 1946. He explained that the two goals compete for the Fed's attention, which means that neither goal can be pursued singlemindedly. In the short run, advancing on one front may entail retreating on the other. In the long run, the Fed must be content to focus on the issue of price stability. The long-run level of employment is determined by real forces in the marketplace and not by central-bank policy.
Price stability is defined in a perfunctory way. It means an inflation rate of 2 percent a figure that supposedly commands a broad consensus and is far enough above zero to keep the Fed's policy committee fully in play. With a 2 percent inflation rate, which puts a 2 percent inflation premium on interest rates, the FOMC has three options: It can raise interest rates, lower them, or keep them the same. With a 0 percent inflation, the Fed loses one option. The "zero lower bound" on nominal interest rates has long weighed heavily on Bernanke's mind. Conventional open-market operations, in which short-term government securities are bought with money newly wrenched into existence, cannot push nominal interest rates into the negative range. At the zero rate, the Fed has put itself in the position of a first-time water skier who has the tow rope pulled up against his Adam's apple.
(Excerpt) Read more at mises.org ...
“What Can We Expect Next from the Bernanke Fed?”
QE2, QE3, QE4...
Nothing!Buy gold and silver and put these paper pushers/snake oil salesmen OUT of business.
But your right. Americans NEED to be buying gold and silver while the dollar gets inflated to the point its worth less then toilet paper.
Gold isn’t the solution historically. No system is scum proof, if there’s scum in charge don’t expect good results.
If one can (and people have) control the amount of gold in circulation and make debt repayable in gold, one can wreak havoc. I suggest: The Money Masters” for a historical background.
Here’s my idea of real Hope & Change.. the immediate and total abolition of the Federal Reserve system and a return to a legal, transparent and sound monetary policy.
LOL! My thoughts EXACTLY.