This week, Fed Chairman Ben Bernanke testified in front of Congress. It wasn't pretty:
Bernanke's response "If somebody has their wealth in dollars, and they are going to buy consumer goods in dollars...then [with] the decline of the dollar, the only effect it has on their buying power is it makes imported goods expensive."
Greenspan was so much better at the the Fedspeak than Bernanke is.
Yes, thanks Ben, so the senior citizens who are on fixed incomes lose 10% of their buying power. Well, maybe the old people can go back and work at McDonald's. Old people die anyway if they don't keep active, right?
As a side note, when Alan Greenspan (a noted gold bug before he was appointed Fed Chairman) was on the Daily Show, Jon Stewart asked him if the Fed was even necessary. With the dollar in freefall, this could be an issue that may loom large come the 08 elections.
BONUS: Reaction to Bernanke's testimony from the trading floor
No comments:
Post a Comment