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Friday, November 09, 2007

Ron Paul Schools Ben Bernanke Again



This is one of the reasons I believe people have lost confidence in the political process, as evidenced by voter apathy reflected by turnout at the polls. Here we have the only politician willing to speak openly and honestly about something that truly affects regular peoples lives everyday, and he's running virtually last in the polls.

Are we as citizens that dumb or is the process of electing our future leaders that corrupt and disingenuous?

Of the small amount of Helicopter Ben's testimony I did see, I could not believe this guy is in charge of the Fed.

This quote yesterday from the Chinese:
"We will favor stronger currencies over
weaker ones, and will readjust accordingly," Cheng
Siwei, vice chairman of China's National People's
Congress. The dollar is "losing its status as the
world currency," Xu Jian.

Bernanke was asked directly about this and said he had no
concern that there would be any adjustment. This is a very high stakes game of poker so he had better be right about this.

He mentioned how the dollars weakness would only
effect exports not imports????? It's said the bond
traders went nuts when he said that. This is pure crazy talk.

He was asked at what level mortgages should be
protected if/when Congress decides to do that, at
first he deferred and said it was up to Congress, but
when pressed further he said basically "I don't know
$1Million". Ridiculous. We're going to protect fool-hardy behavior from homeowners sophisticated enough to secure a million dollar mortgage. Are you out of your freaking mind?

In my opinion, Ron Paul was remarkably restrained. I'd have thrown something at the Fed Chairman. Maybe if it hit him, it would knock some sense into him.



FROM FINANCIALSENSE.COM - DEADLY DOLLAR CONFLUENCE
http://www.financialsense.com/fsu/editorials/willie/2007/1108.html

Despite what the US Federal Reserve claims, they will indeed cut interest rates again and again. Their motive in a deceptive statement of balanced risks for growth and inflation was intended to prevent a financial market immediately pricing of that next cut.

The GDP assumes price inflation is running at 3% or so, from the Personal Consumption Index, another kooky series. The actual price inflation has been running at 10% or so for almost a full year, as anybody with a freaking pulse can testify, who lives, breathes, eats, transports, entertains, builds anything, and uses services in life from day to day. The liars have seen a gulf grow from their numbers versus reality, with the price inflation lie running above 6% now. This means all inflation adjusted statistics are wrong by at least 6%, namely income, economic growth, retail sales, even the previous peak gold price and previous peak oil price. The travesty of lies on price inflation deeply affects the Social Security recipients and federal pension holders and savers. They must accept measly fixed income lifts.

The confidence level in the USDollar is another key element. USFed Chairman Bernanke said something truly stupid today, easily refuted by a good college student. He said that US export prices are rising (a good thing), but US import prices are not rising (a lie).

Hey, let’s be really clear, Ben Bernanke looked scared today before the Congressional Banking Committee. He claimed the “USDollar is sound in the medium term” which sounds half as baseless and empty as the parroted Paulson claims that “A strong USDollar is in our national interest.” Laughter would be warranted if the situation were not so desperately dire and dangerous.

The USFed dilemma is great for gold. In fact, the USDollar is not central to the gold bull anymore. THE DRIVING FORCE IS GLOBAL MONETARY INFLATION, PUSHED BY CENTRAL BANKERS. The money supply growth is over 14% and rising with each passing quarter. In a two-week period in August, the US$ money supply grew at an annual rate of over 50%. Can you say WEIMAR ???

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