Mr. Bernanke has used the analogy of a golfer with a new putter: Unsure how it will work, he finds the best strategy is to tap lightly at first and keep tapping until the golfer figures out how best to use the putter.
jon hilsenrath of the wall street journal,
describing federal reserve chairman
ben bernanke's intended approach to
the next round of money-printing
(you know--the one he promised
wouldn't be necessary)
for any of you out there who still harbor illusions that the experts in washington steering us through this crisis are firmly in control and know what they're doing: if this bit of brilliance doesn't once and for all open your eyes, then i fuckin' give up.
seriously--god help us all.
6 comments:
Yeah, we're in a bad place.
MKF:
We were almost in a great depression. It was the aggressive actions taken by Bernanke and Hank Paulson (much as he unfairly favored Goldman Sachs) that averted it.
Do I wish that it had not happen? Of course.
But Bernanke (an expert on the depression, btw) has handled being Fed chairmen, I think, very well given the difficult circumstances.
Is inflation likely to rise? Yes, but the bigger danger right now is deflation. Japan is the perfect example of this and the lost decade.
Guttermorality has made its preferences clear and bought gold. Gold has continue to rise (if not nearly as much as many predicted). I think there is more room for gold appreciation before the bubble collapses...as it will.
But, Guttermorality's view that we are one short step from bartering for bread is just simply not likely.
will: you don't know the half of it
noblesavage: yeah, those are the standard talking points, and you spout them beautifully; it's the fact that you apparently believe them that gives me pause.
oh, and as for your comment that "i think there is more room for gold appreciation"--that's sure as hell a different tune than the one you were singing when you urged me to cash in at $1,000, $1,100 and $1,200.
kinda like the different tune ol' ben was singing back in early 2009 when he assured the world that one round of "quantitative easing" would be more than enough to resuscitate the US economy, don'tcha think?
I did not expect the pronounced weakening of the economy that happened beginning in the first quarter of this year and was really felt in the second and third quarters.
But, the GDP numbers continue to be positive, if not great. When exactly, is the great depression supposed to happen then?
As for gold, I will make this prediction: Gold will be $750 an ounce on 1/1/12 -- about 15 months from now.
Tell me, guttermorality, where you think gold will be on that date?
noblesavage: the gdp numbers are the result of the same sorta cherry-picking and manipulation as is the consumer price index, and therefore just as untrustworthy--you'd know that if you'd ever finished chris martenson's crash course.
and as for the price of gold in january 2010? i'm gonna go with the same guy who told me back in 2008 that it'd be around $1350 by now, and say at least $2,000.
but that's nothing compared to what silver's gonna do--get you some, ok?
We were almost in a depression?! WE ARE IN A DEPRESSION!
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