Monday, October 20, 2008

Bernanke ready to give the addict another fix

Bernanke comments boost markets

US Federal Reserve chairman Ben Bernanke has given markets a lift by suggesting the American economy might need another boost to revive its growth prospects. You couldn't make this stuff up.

Posted by matt_the_hat @ 04:56 PM (803 views)
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7 thoughts on “Bernanke ready to give the addict another fix

  • japanese uncle says:

    In all probabilities, UK economy will experience the combination of deflation and severe recession, which will have a positive impact in one aspect. In a deflationary economy, people will be deterred from borrowing too much, as the real value of the debt will be greater unless being repaid quickly. This debt junckie culture will suffer a heavy blow in that climat. Not a bad thing at all.

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  • The UK will not experience deflation – they don’t have the discipline like the Japanese – the printing presses are only at half capacity.

    The big worry we have is aviation fuel – if Bernanke keeps using his helicopter

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  • matt_the_hat, right on. We’re heading for hyperinflation – it is the only way the UK will be able to avoid defaulting on its colossal debt obligations and meet it’s spending commitments.

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  • If its a deflationary spiral you are referring to JU cause by debt (money) destruction – don’t worry because if you personally won’t support your countries economy by borrowing up to the eyeballs the government will and have stepped in to do the job for you. You too can be a share holder in RBS & HBOS and reap the benefits of increasing prosperity.

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  • it’s deflation on the way, at least for the next three years. treasury cannot afford to destroy GBP by running the printing presses 24/7

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  • The markets haven’t got a clue what’s going to happen. That’s why they are up record amounts one day and down record amounts the next. And we don’t have a clue what’s going to happen either – as evidenced by the fact that there’s about a 50/50 split on here of who is expecting deflation and who is expecting hyperinflation.

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  • Berwanke; ‘Any government spending would need to kick in quickly to encourage people and businesses to boost spending and help the economy during the period in which economic activity would be otherwise weak, he said. ‘

    So Ben, what are Mr & Mrs Average America going to spend their money on, buying houses perhaps or hows about a nice big SUV or Pickup now that Gas prices are falling, or hows about lots of small price ticket items with Made-in-China stamped on them.

    Come on, unless the cash is delivered in readies to peoples doorsteps they will not see it, deflation or hyperinflation it will make no difference, the years of the gold plated credit card expenditure are over because a lot of people are now starting to realise they will be very poor in their retirement.

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