Bernanke and The Queen of Soul???

So, my boy Bernanke tried to talk the U.S. dollar up (and, subsequently, oil and gold down) on March 1, 2012, by explaining that the fed may not be heading into another round of quantitative easing.  I don’t know if this should really be shocking…maybe annoying instead, but his snake oil works like a charm in the hours that follow dissemination.

Then, on Wednesday, March 7, 2012, the Wall Street Journal breaks a big story that suggests Fed Officials are considering a new type of bond buying program designed to:        “subdue worries about future inflation if they decide to take new steps to boost the economy in the months ahead.”

Allow me to point out a few interesting elements:

March 1 2012-no QE3

March 7, 2012-yes QE3…albeit, apparently new and improved

Fed Officials are worried about FUTURE inflation-Any thinking people out there looking past current inflation right now????  This is akin to Aretha Franklin taking steps to avoid appearing fat in the FUTURE. Let’s stop pretending, inflation is already here in a big way and the Queen of Soul…eeesh.

The big If-They then use the word “if” in a way that suggests there still exists some possibility that QE3 may not take place…that’s freaking precious.

TD

Our Boy Helicopter, Bullshit Artist Extraordinaire

So on Wednesday, February 28th, Bernanke had some very moving words to share:

“The unemployment rate remains elevated; however, the committee expects the pace of recovery to pick up over coming quarters and the unemployment rate to resume it’s gradual decline toward levels that the committee judges to be consistent with its dual mandate.  Inflation has moved up recently, but the committee anticipates that inflation will subside…”

I could totally bore you by regurgitating his seemingly endless supply of utter horse shit, but I’ll focus on a few noteworthy results of the speech:  dollar (symbol DXY) up gold (symbol GLD) and oil (OIX) down.  Impeccable timing, no?

I will once again remind you to watch what he does and IGNORE what he says.  His only defense of the dollar has been lip service.  Expect this theme to continue.  Interestingly, a story in this weekend’s Globe and Mail suggests Iceland  is considering adopting the dollar….the CANADIAN DOLLAR that is.  Unthinkable?  See the table below for a perspective on how long world reserve status has been maintained historically.

 

 

 

 

Excellent Thinking Man’s Video on JFK…and really a whole lot more

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