Federal Reserve chairman Ben Bernanke seemed pretty chipper Tuesday afternoon. Another Federal Open Market Committee meeting decided to ’stay the course’ and continue to keep interest rates low and the policy of the Fed buying U.S. bonds to fund the debt. Bernanke appeared unconcerned about the wave of market sell-offs following the crisis in Japan, nor with the price of petroleum nor with the rising rate of inflation. Old Ben didn’t mention Japan, and just commented that the economy “improving gradually” and the recovery is on “firmer footing”. But should Bernanke take a hint from Julius Caesar and “Beware the Ides of March”? Critics of the Federal Reserve System would sharply disagree with Bernanke’s assessments and policies.
While oil prices have come down recently due to the disasters in Japan, there are still many swords suspended over the global markets. In Bahrain, for example, the government announced a three-month state of emergency to crackdown on the Shia Islam majority of the tiny island nation. Saudi Arabia and several other Gulf states also are helping out, sending some 1,000 troops to Bahrain. The Saudis have also been flexing a strong arm with their own Shia population, much to the discontent of Iran.
The world markets plunged today as Japan’s Nikkei exchange lost 10.5% of it’s value Tuesday, which followed a loss of 6.2% on Monday. Over $600 Billion dollars in paper wealth evaporated. Japan’s central bank pumped another $180 Billion to stem the bleeding, but to no good. Some bond analysts are growing deeply concerned that Japan will soon start defaulting on their debt, which is double their GDP. If they start selling off the $800 Billion is U.S. Treasuries to stay alive, the ramifications could lead to the a global meltdown of the dollar.
But Ben Bernanke seems not to be phased by any of this. Nor did the Federal Open Market Committee meeting of the rest of the regional heads of the Federal Reserve System. The price of petroleum, inflation, lousy housing market and high unemployment be damned! The Fed will continue it’s policies of nearly zero interest rates and buying U.S. debt, since nobody else wants to. Get ready for a third round of quantitative easing! I would suggest Ben recall that warning to Julius Caesar, “Beware the Ides of March!” Bernanke and the rest are acting like it’s the Feast of Lupercalia!
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March 15th, 2011 at 4:15 pm
Bernanke should help Obama with his NCAA picks!
March 15th, 2011 at 5:11 pm
This leads me to think they’ll say anything to prevent pandemonium.
How can one not think that this propaganda aimed at preventing total economic anarchy ?
But… I have to admit, it gets confusing, I thought that’s what they wanted. Maybe they’re just trying to make it look like they give a sht.
Maybe whatever credibility dickhead had left is shot to hell so hes got benjy consoling us.
March 15th, 2011 at 6:23 pm
This guy is a JOKE. His only solution is to print more money. get ready for hyperinflation, buy silver : http://silveristhenew.wordpress.com/where-to-buy-silver-as-an-investment/
March 15th, 2011 at 7:09 pm
There are those right wingers that want to abolish the central bank’s independence. But I say, if you look at all the huge wealth the US has built up over the years, an independent central banks “has proven itself” to be a good thing. There is no more perfect way to manage our treasury I think. It should have independence from our Presidents, Our Congress, and our Supreme court. Whether it need be so big, so many expensive branches, so big a staff is another matter. Independence from the politicians is good and it makes them also have to work harder to come up with saner financial plans to sell a presidential policy. Would you want someone like Hillary appointed by the Prez to be head of the Federal Reserve under complete control of the white house? No I think not. Greenspan was a bit too much of an ideologue for the republicans himself, but the fed reserve board somewhat tempered him. I think with just an administration federal reserve appointee under their direct control could be a disaster with the wrong headstrong policies. There would be no one to push back. Its independence helps attract money here from abroad. If you don’t trust a direct Putin appointee who he has line authority over to run the russian central bank, then why would you trust the same thing here?
March 15th, 2011 at 7:41 pm
I trust only in God! All others must pay cash, preferably in gold or silver!
March 15th, 2011 at 7:43 pm
I’ll also accept chocolate, tobacco, food, booze and anything else that is tangible and has a practical use.
March 15th, 2011 at 8:26 pm
hehehe keep buying gold, people… keep buying gold
March 15th, 2011 at 8:45 pm
Don’t forget coffee Andy! It’s gonna hit 5 bucks a cup soon, at this rate!
March 16th, 2011 at 6:38 am
Coffee’s a good one, JoAnne! As well as any sort of prescription, and illegal drugs!
March 16th, 2011 at 6:42 am
Oh! Don’t forget sugar, too! Maybe stock up on some Creamora and powdered milk, unless you own some cows or goats. I always say the best book anybody can own who is serious about surviving any sort of disaster is Kurt Saxon’s “The Survivor, Vol. I”. A terrific collection of how-to articles from the late 19th and early 20th Centuries. It even has a copy of “MacKenzie’s 10,000 Recipes” from 1879 in it. Just what you need to do anything from butchering produce to making soap.
March 16th, 2011 at 7:40 am
Gun
March 16th, 2011 at 10:42 am
For that, Micky, you want Saxon’s book series, “The Poor Man’s James Bond”, loaded with details on all manner of fun and guns. Even schematics for machining submachineguns!
March 16th, 2011 at 10:43 am
Hey ‘Me’, who’s your stock portfolio doing today?
Keep buying that paper junk!
March 17th, 2011 at 6:27 am
@ Brian:
“There are those right wingers that want to abolish the central bank’s independence. But I say, if you look at all the huge wealth the US has built up over the years, an independent central banks “has proven itself” to be a good thing. ”
I disagree on that one. Sure, maybe the central bank has been able to encourage economic booms, but the distortions it also creates lead to massive busts – like the one we’re in right now – that create a lot of misery.
Additionally, it was tasked with preserving the value of the dollar, but the dollar has lost 97% of it’s purchasing power since 1913.
If it wasn’t for the central bank, we probably wouldn’t have had so many high peaks and low valleys over the decades and economic growth would have been more even. Keep in mind that America did just fine up until 1913 without a central bank.
We simply don’t need it and it’s a stumbling block to a healthy economy.