Bernanke Still Thinks It is a Low-Rate World

My take is that Bernanke sees the writing on the wall. This is primarily a crisis of confidence, and his statement is just a form of jawboning.

Hi all,

if you have any idea of what will the FED do on September, 18th on the light of the recent market turmoil, feel free to leave your vote on my blog's poll at:

http://www.thedailyeconomist.blogspot.com/

best,

Bernardo.

Initially, I thought this was bad judgment by the Federal Reserve. Since then I believe protecting our Capitalist system in the US outweighed the increase costs of Oil and Gold.
Oil will soon become a secondary fuel.
Gold reflects foreigners owning dollars and not knowing what to do with them.
Until housing prices increase in the top metropolitan areas, Gold will merely appear to hold value. The Federal Reserve has decided that keeping Americans in their homes is more important than whether Social Security will be here in 20 years—OOPS!!

In the U.S. interest rate are going lower, Gold is going higher, Oil is going higher, inflation is going higher, the dollar is going lower. What is wrong with this? Everything! At some point the FED is going to have to raise rates bigtime. We are in a very, very, precarious situation at the moment. I think Gold will tripple to over $2,000 an ounce when the market finally wakes up and sees the real inflation. Last I checked a lower dollar = higher import prices. There is no inlfation deflator here. With commoditioes on fire you can forget about that. Bernanke should have never lowered rates last week. However, the Fed might be doing something that few have talked about. Maybe the Fed has abandoned the dollar the crush teh trade deficit. Good luck, it will take 20 years to correct our 6% of GDP trade deficit and move it back to under 1% of GDP, unless you want to seriously disrupt the global economy. We are in for tough times people. Very tough!

Oct. 1 issue. Hooray there is actually someone out there who has it right. Congrats to Vitaliy Katsenelson, for his outside shot article.

Hi. could you please remove comment #2 as it points to a non-existing url