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Must Rachet Up The Rhetoric

25 April 2011 3 Comments

Ben Bernanke is doing a press conference this week.  It’s the first time he’s ever done it.  It will be in coordination with the Fed’s two day meeting.  The question is why is he doing a presser?  Make no mistake, nothing is random here.  Could it be that the Fed expects it will need to defend its actions more thoroughly in the future?  This doesn’t seem far-fetched.  If this is indeed the case, I think it means higher inflation and more rhetoric to “ignore” the inflation and defend the inflationary policies.  This should be fun.

3 Comments »

  • @piratecents said:

    I expect the press conference will be the announcement of QE3. With the housing market continuing on its downward trajectory, Bernanke "needs" inflation to bring the values of properties higher than what people owe in order to put a "real" floor under the economy. Plus, a wasted dollar will make government debt owed 'cheaper' and exports more competitive. I think he's trying to save the USA with his printing press. (not that I agree with it, just saying, that's what it looks like to me).

  • 20smoney said:

    You might be right but i dont think they call it QE3… they will try and disguise what they are doing because the political pressures are mounting… hence the need for a press conference.

    I still think they stop QE when QE2 ends then they resume another round after a brief period.

    Regardless i think the path is set regardless of the short term timing. You have to own gold/silver in this environment.

  • WPC Flooring said:

    This is exactly what I was already doing. But when I came across the realization that it isn't set correctly on boot I thought I would ask about a different way.