Bernanke Says Rates Are `Well Positioned’ to Spur Growth
click for video
Excerpt:
Federal Reserve Chairman Ben S.
Bernanke signaled he’s done cutting interest rates for now and
raised his biggest concerns yet about the inflationary effects of
the dollar’s 16 percent drop in the past year against the euro.
The Fed is working with the Treasury to “carefully monitor
developments in foreign exchange markets” and is aware of the
effect of the dollar’s decline on inflation and price
expectations, Bernanke said today in his first speech on the
economic outlook in two months. In addition, interest rates are
“well positioned” to promote growth and stable prices, he said.
Source:
Bernanke Says Rate `Well Positioned,’ Watching Dollar
Scott Lanman
Bloomberg, June 3 2008
http://www.bloomberg.com/apps/news?pid=20601087&sid=aPYwMe5KGlpM&
Bernanke signals more rate cuts unlikely
Federal Reserve Chairman Ben Bernanke signaled Tuesday that further interest rate cuts are unlikely
Rates are well-positioned to spur growth… growth in the money supply, he means.
I’m using a wad of dollars to keep the fire escape door a jar in my building. Anybody else find good uses for these things?
Ron Paul grilled Bernanke on the issue of dollar depreciation and inflation last November. Bernanke played dumb and wouldn’t acknowledge the relationship. Go to you tube and watch the tape of the testimony. Bernanke is either a liar or stupid.
Does anybody care to guess what kind of medication he is on?
I think that it’s some new drug that the banker’s developed to keep him in line with their agenda.
I for one do not think BB is dumb. He knows full and well what is going on. I actually feel for the guy….Greenspan screwed him from the start. I do not agree with everything he has done, but he sure was handed a huge mess when he took the job.
Imagine the repercussions if he had come out and spoke the absolute truth about the US economy……
Entropy,
I used to feel a bit sorry for BB. But I don’t feel much sympathy for BB anymore. Someone correct me if I’m wrong, but BB was a voting member of the FRB throughout much of the Greenspan years. I highly doubt he dissented to any of their decisions that has put them (us) in the place they (we) are today. He had a hand in creating the mess he’s in charge w/ managing today. He continues to tow the line for the power players, and dig our hole deeper and deeper.
Amen to that, Ruber.
He had to have known how bad things were when he took the job or else he’s awfully damned naive or stupid. No sympathy from me whatsoever, past or present.
Being motivated by naked self-interest is hardly being stupid. These people are crooks, pure and simple. The people who presided over this mess(Greenspan etc) or glorified its phony figures (Friedman etc) are ultimately just useful idiots. RIP Globalised Capitalism. Killed by greedy self-deluded bums who’ve never been near a business product in their lives.
The purpose of monetary policy now is to put in a few more false bottoms and sucker’s rallies before heading for the exits. Then head for a bunker and hope no one knocks at the door.
I remember a cartoon (Herblock?) in the 90s of Greenspan stirring a witch’s cauldron full of various economic theories to prepare his policy. Can Bernanke, the Fed, the “powers” behing them, really be blamed or considered responsible for all that’s happening to the economy and the dollar?
Isn’t the whole idea to depress dollar’s value to compete in a new era with the Euro, and in the long term (50 years or so) an Asian currency centered around the Yuan? And declline the dollar enough to erode the federal debt held chiefly by our colony-er-satellite-er ally Japan and our parisitic twin China?
BB is giving a speech in Cambridge, MA (Harvard) today and said (I’m paraphrasing here) that “the Fed has learned from the oil shock of ’73/’74 and the resulting inflation of the 70’s. Luckily we are now measuring inflation in tenths of percents now versus whole percentage points back then”.
What freaking planet is he on? Tenths of percents?? Bullshit!! I see lots of things that have DOUBLED in price and he expects me to continue to listen to such bullshit as a an increase in inflation measured in tenths of a single percent??
Come on!!!!!!!!!!!!!!! How can anyone continue to be perceived as being credible while making such absolutely ridiculous statements?? Making such outlandish statements totally undermine anything the guy might say.
While we are on it. I was there in 1973, 1974 & the 70’s and we NEVER experienced the gyrations in prices back then that we are experiencing now. Back then it was a graduation increase over time. Here in 2008, some prices increase 25%, 35%, 50% in a matter of a couple of weeks or quarters. So you tell me…is it really better now? …I don’t think so and neither do you.
And this afternoon he says inflation is contained…
I really question the timing of Mr. Bernanke’s message. It suggests a great deal of fear the dollar is on the verge of utterly disintegrating. By all appearances, it sure looks as though it could.
I also wonder what of this is related to the LIBOR freak show. Does the Fed see the BoE is on the attack?
BG, why such acrimony??
Let’s look at a real-world example of measuring in tenths of a percent instead of simply percents: Dow Chemical didn’t raise prices 20%. They raised prices 20.0%.
I hope that helps…
;-)