Bernanke has lost all credibility

I'm not criticizing the critics who've posted this thread, only I note how much worse off we would be if instead of a professor with no real world (ie Wall Street) experience, we had a Wall Street pro like Paulson calling the shots. The sheep shearing would boggle the mind. For instance, imagine how long it'd take Paulie to bamboozle a President McCain into some kinda left handed privatizing of Social Security, or some similar scams to pick the pockets of working schmucks. Five minutes, ten at most? The funny money games would be so extreme and difficult to figure that working schmucks (me, you, so on) wouldn't have a clue til it was too late -- by which time the rich and their shot-calling benefactors would long be settled into their comfy, Blackwater protected seaside palaces in the Gulf, next door to their sheik buddies.

Can you say Michael Jackson?
 
Quote from Thunderdog:

Transportation costs affect the cost of just about everything.
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sure T-dog... and why do we need trucks to carry oil all over the country just so that homo americanus may continue to fill his tank and pollute no end when we have trains, electricity, electric vehicles, abundant solar energy etc... why don't we take all that worthless shit out of the equation...

leaves flying & plastic bags, simplifying a bit... as i said, big deal...
 
Quote from detective:

It doesn't really matter to the rich, those most responsible for the stock market. I have said numerous times that higher oil is a net benefit to the market in the short term.

From a humanistic standpoint, bailing out banks and devaluing the dollar only helps the rich, the poor are taking it up the rear because they get squeezed by higher oil much more than rich bankers.

Bernanke is basically stealing from the poor and giving to the rich through his inflationary policies. Unless Congress wants to keep handing out $600 rebate checks forever, the poor are gonna get shafted

Inflation crushes the poor, it merely annoys the rich.
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From a humanistic standpoint, i'll just {yawn} if u'll excuse me... your understanding of monetary policy management, of who was asleep at the wheel (hint: the OCC, ie US Gvt...) etc, is barely good enough for ET, although you do have a lot of company here... thks for the entertainment...
 
Quote from detective:

Inflation is getting out of control and this bookworm knows only one thing, that if the US printed a ton of money during the 1930s, there wouldn't have been a Great Depression. Now he's out to put his theories into practice, trying to prevent something that's not even close to happening. Injecting stimulants into an aging patient thinking that's the cure. He's thinking new ways to hand out money to Wall Street through TAFs taking in garbage that no one wants, devaluing the dollar in the process.

Crude oil is $129/barrel. And Fed funds rate is at 2%! The guy thinks that if he tells us that inflation is under control, we'll believe him. Inflation is the killer of the poor, the banks love inflation because they get to use the money first before it rapidly loses value.

The only inflation hedge out there are commodities. The euro will budge under US pressure at some point and print to keep their currency from becoming too strong. Same with the Swiss and other fiat currencies.

A Fed hell bent on stopping a recession even before it starts is only going to cause oil to go higher. Its not Goldman thats causing this rise, its coming from 2 factors, supply/demand, and Bernanke rolling the printing presses non stop.
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debt to gdp hasn't been this high since the 20s. add in derivatives to that leverage and its even worse.

i wouldn't say that another depression isn't close to happening. pick your poison, depression or stagflation. although a depression might end up being the result once inflation really gets going and the global economy takes a dive.
 
Quote from piezoe:

I'll take a stab at it. Ben is monetizing George's soon to be 3 trillion war debt. In other words, we are inflating (i.e., printing) our way out of debt rather than paying it off with higher taxes or increased productivity. This (monetizing) causes the debt burden to be shared between US Citizens and the foreign countries that have loaned us money. This is standard practice for debtor nations. (Without the war debt, Ben would have more flexibility in how to handle the recession. All in all, he is doing a pretty good job considering what he is dealing with.) For more on this topic see recent papers of Joseph Stiglitz.
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inflation is a way to increase taxes without actually increasing taxes
 
Quote from flyingiguana:

inflation is a way to increase taxes without actually increasing taxes
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Precisely! You catch on rather quickly. And which route may i ask is politically more expedient: raising taxes directly, or indirectly via monetization and the consequent inflation it causes? I rest my case.

Argentina here we come,
Da da da da, dah dah dah, da!
 
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