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Bernanke Says Commodities Only Flaw In His Plan

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THIS IS NOT A GOLD THREAD.

http://www.bloomberg.com/news/2010-11-06/bernanke-defends-fed-securities-purchases-says-growth-will-support-dollar.html

Bernanke Defends Bond Purchases, Predicts Stronger Growth
By Steve Matthews and Timothy R. Homan - Nov 6, 2010 4:00 AM GMT
..../
Asked by a student if “skyrocketing” commodities prices may threaten his inflation outlook,
Bernanke said rising commodities prices are “the one exception” to a broad reduction in inflationary pressures
. Overall, excess slack in the economy will make it difficult for producers to push through higher prices to consumers, he said.
“Emerging markets are growing quite quickly,” Bernanke said. “Demand for those commodities is pretty strong. That is going to be a contributor to inflation in the U.S. because it will affect gas prices, for example, and so on.”

Inflation IS rising commodity prices--what else is there? The bottom line is that every thing we eat, use for shelter and clothe ourselves is based on some commodity or other. IMO Bernanke is too academic and almost as economically naive as Brown was when he claimed that he had beaten the economic cycle.*

The sooner they replace Bernanke the better IMO.

________________________________

* http://www.bloomberg.com/news/2010-11-04/bernanke-doesn-t-understand-economics-investor-jim-rogers-tells-oxford.html

“Dr. Bernanke unfortunately does not understand economics, he does not understand currencies, he does not understand finance,” Rogers, 68, said in a lecture at Oxford University’s Balliol College yesterday. “All he understands is printing money.”

Edited by Realistbear

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THIS IS NOT A GOLD THREAD.

http://www.bloomberg...ort-dollar.html

Bernanke Defends Bond Purchases, Predicts Stronger Growth
By Steve Matthews and Timothy R. Homan - Nov 6, 2010 4:00 AM GMT
..../
Asked by a student if "skyrocketing" commodities prices may threaten his inflation outlook,
Bernanke said rising commodities prices are "the one exception" to a broad reduction in inflationary pressures
. Overall, excess slack in the economy will make it difficult for producers to push through higher prices to consumers, he said.
"Emerging markets are growing quite quickly," Bernanke said. "Demand for those commodities is pretty strong. That is going to be a contributor to inflation in the U.S. because it will affect gas prices, for example, and so on."

Inflation IS rising commodity prices--what else is there?  The bottom line is that every thing we eat, use for shelter and clothe ourselves is based on some commodity or other.  IMO Bernanke is too academic and almost as economically naive as Brown was when he claimed that he had beaten the economic cycle.*

The sooner they replace Bernanke the better IMO.

________________________________

* http://www.bloomberg...lls-oxford.html

"Dr. Bernanke unfortunately does not understand economics, he does not understand currencies, he does not understand finance," Rogers, 68, said in a lecture at Oxford University's Balliol College yesterday. "All he understands is printing money."

RB, fatal error at the start I'm afraid.

But yes I do think this is an interesting topic to raise. The question of course is whether the market can now respond to rising commodity prices by producing more of those commodities. I can see that we could increase food production, vertical gardens and new seed technology etc, I am less certain about hydrocarbons, though to be honest they could be irrelevant if we did the decent thing and went nuclear.

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I have had the displeasure of having to read a few of Bernanke and his sidekick Gertler's papers on depressions.

Jim Rogers is correct, Bernanke knows very little about practical economics or finance. My view is that history is going to look back at this time and be shocked that an academeic theoretician was handed the keys to the printing press and be allowed to conduct a massive experiement on the US economy which lead to its demise.

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I have had the displeasure of having to read a few of Bernanke and his sidekick Gertler's papers on depressions.

Jim Rogers is correct, Bernanke knows very little about practical economics or finance. My view is that history is going to look back at this time and be shocked that an academeic theoretician was handed the keys to the printing press and be allowed to conduct a massive experiement on the US economy which lead to its demise.

I have a feeling Bernanke will be told to spend more time with his family before he gets to release the full $600bn. When the Americans start seeing $4 gas prices the question will be raised as to why the Fed were allowed to boost oil and derail the recovery. Oil has played a large role in triggering recessions before and it will continue to do so IMO. TBH I think Greenspan has more street smarts and his downfall was really more to do with failure to regulate than anything else.

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I have a feeling Bernanke will be told to spend more time with his family before he gets to release the full $600bn.  When the Americans start seeing $4 gas prices the question will be raised as to why the Fed were allowed to boost oil and derail the recovery.  Oil has played a large role in triggering recessions before and it will continue to do so IMO.  TBH I think Greenspan has more street smarts and his downfall was really more to do with failure to regulate than anything else.

Indeed, I do feel the Tea Party Meme has penetrated popular US culture. The question of course is whether the "we the people" can do anything to stop themselves being shafted as a means of propping up the bankers.

Give the banks enough casino tokens and they will force up the prices of whatever they are betting on.

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The "slack" is th overall US economy is becuase both Greenspan and Bernannke have ******ed it with money printing, debt and destroyed competitiveness and allowed the banks to railroad the whole lot to their advantage and the disadvantage of pretty much everyone else, even those that think they have done well will not have done so when their assets and earnings are rebased to a confetti currency.

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do you think we are still headed for deflation?

i think it's inflation all the way from here , gold up close to 50 in one day , we are close to the tipping point now

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do you think we are still headed for deflation?

i think it's inflation all the way from here , gold up close to 50 in one day , we are close to the tipping point now

I think that we are in for a prolonged period of actual living costs increasing relative to incomes by a widening margin. This is going to happen in either an inflationary or a deflationary environment.

There is a cost to be paid for the excess debts still being built up. Even if QE suceeds in stopping the lurch towards deflation, the cost will be a decrease in the standard of living of most people.

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I feel countries who export much to the US shoudl be worried.

I cant find any huge export nature from the UK towards US..

but feel drowing US dollar is good for us.. so that price of oil and other commodities drop...

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In the Austrian classical sense, the inflation is excess money supply. It originates with Bernanke.

The follow through on prices is the result of Bernanke's inflationary monetary policy.

He does not think that prices will follow through to consumers due to the 'output gap'.

I like Faber's reply on this "Let me take you to Zimbabwe, where we can discuss output gap".

The man is insane.

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In the Austrian classical sense, the inflation is excess money supply. It originates with Bernanke.

The follow through on prices is the result of Bernanke's inflationary monetary policy.

He does not think that prices will follow through to consumers due to the 'output gap'.

I like Faber's reply on this "Let me take you to Zimbabwe, where we can discuss output gap".

The man is insane.

I don't think so.

I think he's evil.

Remember, the economists who captured the fed in the last few decades all understand austrian economics through the chicago school. The problem is they've read all the stuff about the horrors of a central bank, realised that actually life is pretty sweet if you are on the inside of that deal and then gone for it.

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It's a giant conspiracy. The planned economic and monetary collapse of the USA and much of the rest of the world.

Or, it's a series of inexplicable coincidences that saw the greatest financial people on the planet become idiots year in, year out.

Which theory is correct. I suspect that Denis Healey would say the former.

Here's a famous quote from Denis, who's a co-founder of Bilderberg:

"World events do not occur by accident. They are made to happen, whether it is to do with national issues or commerce; most of them are staged and managed by those who hold the purse string."

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Here's a famous quote from Denis, who's a co-founder of Bilderberg:

"World events do not occur by accident. They are made to happen, whether it is to do with national issues or commerce; most of them are staged and managed by those who hold the purse string."

Denis, just because you're paranoid doesn't mean everybody's out to get you...

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I think Bernanke is underrated.

They say he is the 8th Most Important Person on the Planet Earth but how many of those others could steal as much money from the public and hand it to spivs and specs like he has?

1

Hu Jintao

President People's Republic of China 67

2

Barack Obama

President United States of America 49

3

Abdullah bin Abdul Aziz al Saud

King Saudi Arabia 86

4

Vladimir Putin

Prime Minister Russia 58

5

Pope Benedict XVI

Pope Roman Catholic Church 83

6

Angela Merkel

Chancellor Germany 56

7

David Cameron

Prime Minister United Kingdom 44

8

Ben Bernanke

Chairman Federal Reserve 56

http://www.forbes.com/wealth/powerful-people

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Could have sworn West Texas Intermediate has only just managed to struggle back up to $87.01 close after hitting $147 nearly 2 1/2 years ago.

This with interest rates at zero and the dollar not that far from where it was at it's lows.

Must have been distracted the this hyperinflationary holocaust everyone's talking about.

$600 oil imminent? :lol:

As Mervyn (correctly) pointed out "It's the levels stupid"

Edited by Red Karma

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Denis, just because you're paranoid doesn't mean everybody's out to get you...

Mention of Bilderberg, I happened to see the BBC's Watchdog show last Thursday. In it they exposed some two-bob carpet cleaning firm by employing actors to be householders and jobseekers along with using hidden body cams and mics.

All that effort for some bait and switch con merchants, and nothing whatsoever to cast any light upon this year's Bilderberg bash in Spain where Kissinger, who's wanted for questioning about war crimes there, was holed-up inside the venue with 100 other globalists who happened to include the Prime Minister and Queen of Spain.

Another example that will ring no alarm bells for the coincidence theorists.

PS Oil to reach $150 per barrel on or before February 1, 2011.

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Mention of Bilderberg, I happened to see the BBC's Watchdog show last Thursday. In it they exposed some two-bob carpet cleaning firm by employing actors to be householders and jobseekers along with using hidden body cams and mics.

All that effort for some bait and switch con merchants, and nothing whatsoever to cast any light upon this year's Bilderberg bash in Spain where Kissinger, who's wanted for questioning about war crimes there, was holed-up inside the venue with 100 other globalists who happened to include the Prime Minister and Queen of Spain.

Another example that will ring no alarm bells for the coincidence theorists.

PS Oil to reach $150 per barrel on or before February 1, 2011.

?

BBC = Bilderberg Broadcasting Conspiracy...

Wait 'till they digitize all television sets so they can spy on J6P an the missus doin' it whilst watching X Factor...

A lot more entertaining than airport body scanners...

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Mention of Bilderberg, I happened to see the BBC's Watchdog show last Thursday. In it they exposed some two-bob carpet cleaning firm by employing actors to be householders and jobseekers along with using hidden body cams and mics.

All that effort for some bait and switch con merchants, and nothing whatsoever to cast any light upon this year's Bilderberg bash in Spain where Kissinger, who's wanted for questioning about war crimes there, was holed-up inside the venue with 100 other globalists who happened to include the Prime Minister and Queen of Spain.

Another example that will ring no alarm bells for the coincidence theorists.

PS Oil to reach $150 per barrel on or before February 1, 2011.

coincidence theorists, there whole life is **** up theory, like Mr Magoo from morn to night

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?

BBC = Bilderberg Broadcasting Conspiracy...

Wait 'till they digitize all television sets so they can spy on J6P an the missus doin' it whilst watching X Factor...

A lot more entertaining than airport body scanners...

But they are going on strike now, so perhaps we can escape the propaganda.

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I feel countries who export much to the US shoudl be worried.

I cant find any huge export nature from the UK towards US..

but feel drowing US dollar is good for us.. so that price of oil and other commodities drop...

Not really - the price of the goods in dollars will rise to compensate for a falling dollar or they will switch to selling their resources in other currencies if the sellers perceive that the currency really is entering its death throes.

The only benefit would be if people jumped into the pound as a 'safe' currency, making energy and commodities cheaper for us. More likely that the pound would go down with, or shortly after, the dollar IMO.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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