THE Ben Bernanke Thread (merged)

[Dukat_Reloaded]

Joined: Jul 31, 2005
Posts: 258


PostPosted: Tue Oct 25, 2005 7:51 am Post subject: Re: Damage to the Amazon rain forest underestimated by half Add User to Ignore List Reply with quote Edit/Delete this post
This is very good news, people will beable to get into more debt, spend more and prop up the economey. Credit will be cheaper, and the crash will be much greater. While everyone will be getting into debt just as before to buy consumer items, I will be getting into debt by buying physcial Silver & Gold bullion, I'm going to go around to a number of banks and borrow upto $500k each if I am able to, then I will buy my bullion and wait until the currency becomes weaker, I will then sell a small amount of the gold to pay back the bank loans.

[OilsNotWell]

think Jim Puplava has been predicting this as well...

Yes, as were others, notably econ bloggers...

[strider3700]

I can't see the states as wanting to hyperinflate quite yet. you may be carrying that loan for a number of yeats.

[jaws]

Bernanke, 51, is a top monetary economist who has long advocated setting formal targets for inflation to help guide monetary policy, a position Greenspan has long opposed.

http://www.sky.com/skynews/article/0,,3 ... 89,00.html

Help me out here guys, I have never heard of this bloke , but if the above quote is true , doesnt it suggest he will be more hawkish on rates (ie hiking them faster)?

If he wants 'formal' control of inflation to help 'guide' monetary policy, then as oil and gas go up , inflation goes up and so does interest rates.

Also if trade deficit goes up (because of oil & gas price increases) then the dollar depreciates and thus imports become EVEN more expensive fuelling the inflation / interest rate cycle still further!!!

So is this guy pro hyper inflation or pro high interest rates?

Im confused..

PB

Let's just say that Bernanke is as big an inflation hawk as Harriet Miers is a strict-constructionist. He's come out highly in favor of using the "printing-press (or today's electronic equivalent)" to do a helicopter drop of money on US households in order to boost consumer demand whenever it seems like the economy is slowing down.

[jaws]

I can't see the states as wanting to hyperinflate quite yet. you may be carrying that loan for a number of yeats.

Nobody wants to hyperinflate, it just sorts of happens you know? Like how a drunk driver didn't really want to run over that kid on the bicycle.

[Schneider]

No matter what the guy may think about economy,i have one thing to say :

Poor guy..it gonna be a hell of a ride for him !

Schneider
French-Canadian

[rogerhb]

Does anyone know of the flight-path of his helicopters?

[perplexd]

I think they have to fly fairly straight until the end of their sortie, as sharp turns are hard on the pilot when you are so loaded down with paper cargo.

[rogerhb]

I hope he's going to use chinooks or sky-cranes.

[perplexd]

Ah, so it was your trading partners that relocated your manufacturing overseas! I'm sure the executives were protesting all the way. It was your trading partners that forced you to live beyond your means. Of course, it can't be an American problem.

You might want to slow down with the "AhHa"s there for a second. I was not discounting our own role in this current predicament. Our trade "partners" may have been the ones to offer us this noose in the form of cheap overseas labor, but I can admit that we willingly stuck our own necks in it by moving our manufacturing there. We were out smarted, plain and simple. America will fall to a 500 million man army and each one of them will be wearing a silly yellow helmet with that stupid little smiley face painted on it.

Outsmarted? isn't it possible that Americans all just bought into a something-for-nothing fantasy that they desperately wanted to believe in since Las Vegas opened for business? Is that a planned trap they carefully laid, or a reality that we're so desperate for that we made it happen, if just for awhile?

If there is a trap here at all, it could well be that we bought the last 10 years of Chinese produced prosperity with dollars that could soon be worthless under Bernanke.

[peaker_2005]

I think they have to fly fairly straight until the end of their sortie, as sharp turns are hard on the pilot when you are so loaded down with paper cargo.

[DesertBear2]

On this point he is correct, our trade "partners" have found away to siphon wealth from the U.S. at an extraordinary rate. I'm afraid that we may have to resort to some good old fashioned protectionist controls in order to curb this problem.

This is correct. We cannot have our great wealth being siphoned off by those greedy $0.25/hour Chinese wage-mongers. Or by these scheming Indian accountants, engineers, and call-center employees.

How dare they ship us high-quality goods and services in return for our valuable greenbacks! Military force must be employed immediately.

[Doly]

He says it's not that there's too much American debt, it's that the rest of the world has a "savings glut":

I see the light now! My credit card debt is not a problem, is the bank that has too much money!

[Eli]

This guy is a doomer fantasy.

"The evidence seems to be that it is primarily in energy and some raw materials and has not fed into broader inflation measures or expectations," the Times quoted him as saying. "My anticipation is that's the way it's going to stay."

link

So he thinks rising energy cost will be limited to just certain sectors of the economy that rely on energy.

You Bush haters out there should love to hate this guy. From all that I have been reading his plan to save the economy is to keep interest rates low in spite of rising costs. Which will encourage more and more borrowing and expansion. Basically he believes in higher and higher debt and letting inflation take care of it self.

Damn the torpedoes full steam a head and spend spend spend and don't worry if you can't pay just take another loan. He is not going to try to head of the intrinsic problems within the economy he is going to try to grow through them, at this point that does not seem prudent to me at least.

[Eli]

Yup he is going to try to spend and borrow are way through higher oil prices and he believes that higher energy prices only have a limited effect on an entirely energy based economy?

"The evidence seems to be that it is primarily in energy and some raw materials and has not fed into broader inflation measures or expectations," the Times quoted him as saying. "My anticipation is that's the way it's going to stay."

Green Span who was a big fan of the gas peddle ie low interest rates and even he was tapping the brakes before he left, this guy is going to punch the gas and try to jump the bridge that is out.

Inflation? what inflation?

[gnm]

So he thinks rising energy cost will be limited to just certain sectors of the economy that rely on energy.

Whew, yeah its a good thing so few sectors of the economy rely on energy.....


-G

[Eli]

So he thinks rising energy cost will be limited to just certain sectors of the economy that rely on energy.

Whew, yeah its a good thing so few sectors of the economy rely on energy.....


-G

My sentiments exactly gnm

[Geko45]

This is correct. We cannot have our great wealth being siphoned off by those greedy $0.25/hour Chinese wage-mongers. Or by these scheming Indian accountants, engineers, and call-center employees. How dare they ship us high-quality goods and services in return for our valuable greenbacks! Military force must be employed immediately.

That's not what I said and you know it.

[Geko45]

Is that a planned trap they carefully laid, or a reality that we're so desperate for that we made it happen, if just for awhile?

Yes.