Bernanke no longer deserves the respect of being called the Fed Chairman. Doesn't deserve the respect of being called Dr. Bernanke. Doesn't even really deserve to be called Ben Bernanke. He has truly lost all credibility in the eyes of anyone who questions his policies. He proved in his 60 Minutes interview that he thought the American public was naive and uneducated from a monetary policy standpoint when he uttered the words "I can lower rates in 15 minutes."
I was fortunate today to only listen to half of his press conference. Waiting in the freezing cold Denver weather for my daughter at school was far more enjoyable. I did unfortunately here a few comments from him.
I was amazed that a hard question was given to him and it pertained to food inflation, the riots worldwide and any correlation with HIS QE policy. His argument for the rise in food prices was a strong global economy and thus the demand side of the equation. That was not only an absurd answer but dismissive. When wheat, corn, soybean and many other commodities are up over 30% in just a few months, how can anyone claim that to be purely demand driven?
What QE has done is forced investors into taking on risk. We can see from the lack of volume in equities that it is just along for the ride. The money has moved into precious metals and commodities. QE has clearly played a role in driving up food inflation and thus causing riots worldwide. What was once a monetary policy by the banana man himself has now turned into a foreign policy nightmare for the US. At least have the respect to tell us the truth like your counterpart did at the BOE. Banana man, you have lost your most important commodity, the one you try to sell to us everyday. You have lost our confidence.
I was fortunate today to only listen to half of his press conference. Waiting in the freezing cold Denver weather for my daughter at school was far more enjoyable. I did unfortunately here a few comments from him.
I was amazed that a hard question was given to him and it pertained to food inflation, the riots worldwide and any correlation with HIS QE policy. His argument for the rise in food prices was a strong global economy and thus the demand side of the equation. That was not only an absurd answer but dismissive. When wheat, corn, soybean and many other commodities are up over 30% in just a few months, how can anyone claim that to be purely demand driven?
What QE has done is forced investors into taking on risk. We can see from the lack of volume in equities that it is just along for the ride. The money has moved into precious metals and commodities. QE has clearly played a role in driving up food inflation and thus causing riots worldwide. What was once a monetary policy by the banana man himself has now turned into a foreign policy nightmare for the US. At least have the respect to tell us the truth like your counterpart did at the BOE. Banana man, you have lost your most important commodity, the one you try to sell to us everyday. You have lost our confidence.
No comments:
Post a Comment