Sunday, February 28, 2010

Bernanke’s epiphany?

Bernanke delivers blunt warning on U.S. debt

Bernanke recently indicated to Congress that the Federal Reserve will not monetise the US debt and that Congress must start taking hard fiscal decisions to reassure creditors that the US will pay its debts. I'm not sure what to make of this. Perhaps Bernanke is just trying to reassure the treasury markets. Alternatively, see the first comment by me for a very different view from Karl Denninger.

Posted by quiet guy @ 03:48 PM (1691 views)
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13 thoughts on “Bernanke’s epiphany?

  • Denninger hypothesises that Bernanke cannot monetise US debt and there must be a drastic cut in US government spending which will have terrible consequences for America.

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  • fallingbuzzard says:

    Bernanke is the treasury market! The only way he can get away with saying that the US is not going to monetize the debt is if he thinks he’s already “monetized” enough.

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  • This is like Blair or Bush warning about war

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  • Quiet Guy, what you are looking for, is devaluation and revaluation. Maybe 1 old dollar for 3 new ones? This will destroy all currencies and the 1.5 quadrillion derivatives death star, because interest rates will go to the moon. Got Gold?

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  • Nice video ‘quiet guy’. I also believe there will be a fiscal crisis as a result of the quantitative easing if inflation gets out of hand. Once investors start seeing poor returns on their investments then I am sure they will leave in droves and it will cause panic.

    In the comments of the article I love the comment that stated no one had mentioned so-far that the reason America is in so much debt is due to the cost of the wars. The American people will surely be working their butts off for many years to come to pay for them.

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  • 4. freemanphil said… the 1.5 quadrillion derivatives death star

    it all nets to nothing don’t you know

    ask 51ck, flashman, et al. (who’s al? ed.)

    lol

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  • FMP if they are monetizing debt in the Us at too fast a rate how can the Core CPI have decreased in January, the first time in 28 years? And i also wonder if you can explain why the dollar is appreciating?

    Thanks, ’cause i dont get it!!!!

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  • 6. techieman said… i also wonder if you can explain why the dollar is appreciating?

    “when others are more wicked, not being the worst stands in some rank of praise”

    William Shakespeare

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  • good economist / trader that Will Shakespeare geezer!!!

    Yes that may be true but everyone told me i was nuts when i said i would be astonished that the Euro wasnt near a major top late last year… before it happened.

    Anyway FMPs point is about the dollar being devalued, as i understand it… like i say i just dont get it.

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  • 8. techieman said… like i say i just dont get it

    don’t worry about it – no one does

    not even freemanphil

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  • aha, you are right no-one really gets it..

    But HE THINKS he does – thats what is so S-C-A-R-Y…

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  • @techieman

    as much as i respect freemanphil’s passion, i cannot help but be reminded of the following…

    the most radical revolutionary will become a conservative the day after the revolution

    this quote doesn’t apply to me, of course

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  • of course!

    Goodnight Devo

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