If you thought that Bernanke’s “news” was in any way uplifting, just take a look at the gold market
Posted by Adam King on May 01, 2011
Bernanke’s con game driving investors to the gold market.
May 1, 2011 – If you thought that Bernanke’s “news” was in any way uplifting, just take a look at the gold market. As the price of gold rose, the dollar sank to its lowest point in over three years, and the currencies of even third world countries continued to set records against the dollar.
No news. If anything, Bernanke defiantly told the rest of the world to take a hike.
Never mind that everybody else is tightening their policy and implementing austerity measures. Never mind that doing so has directly led to a rate of growth that leaves ours in the dust. Never mind that a sizeable chunk of the little growth we have had is due to manipulating a trade advantage with cheap dollars. And never mind that could come to a complete halt any day as nations retaliate with trade restrictions. That’s our policy and we’re sticking to it.
But how do you balance that with Treasury Secretary Tim Geithner’s statement that “we will never embrace a strategy of trying to weaken our currency to gain economic advantage?” And Bernanke’s claim that “the Federal Reserve believes that a strong and stable dollar is both in American interests and in the interests of the global economy?” Actually you cannot, but it doesn’t matter.
The real problem, and one which must taken care of before anything real can be done to fix the economy, is as Bernanke stated, the deficit. Whether he believes nobody will notice or whether he is just too arrogant to care, Bernanke is hell bent on making the US solvent by inflating our way out.
It will be, of course, another case of the cure being worse than the disease. Much worse. The Fed has already stretched the limits of the world’s patience with its shenanigans. We no longer are waiting for the other shoe to drop – it is already falling and falling fast.
We have seen but the first tentative steps into the gold market – will soon become a stampede as the world grows weary of Bernanke’s con game.
Stewart Lawson
Senior Staff Writer – Certified Gold Exchange
Categories:
US Gold Market
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