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Forget Forecasting… Can Ben Bernanke Actually Read?
I
realize this headline sounds odd, but hear me out.
A
few weeks ago I suggested that someone buy Ben Bernanke a stockcharts account
so he could see how commodity prices have been soaring across the board and
realize that inflation is already present in the financial system.
However,
at this point our esteemed chairman wouldn’t even NEED a stockcharts account as
the news headlines couldn’t be clearer:
FAO food price index hits
record high in December
Global
Food-Price Index Hits Record China has raised interest rates twice in recent
months to combat inflation. Euro-zone inflation jumped past the bloc's target
rate for the first time in more than two years, data released this week showed,
and economists said the rise was likely due to higher food and energy prices.
UN body warns of ‘food
price shock’
The
world faces a “food price shock”, the Food and Agricultural Organisation has
warned after its benchmark index of agricultural commodities prices shot up to
a nominal record last month, surpassing the levels of the 2007-08 food crisis.
The
warning from the UN body comes as inflation is becoming an increasing economic
and political challenge in developing countries, including China and India, and
is starting to emerge as a potential problem even in developed countries,
including the UK and the eurozone.
China Acts To Prevent
Collusion On Prices
China's
economic planning agency unveiled regulations to prevent price collusion and
monopolistic pricing practices, giving the government more tools to rein in
inflation pressures… Under the new rules, competitors will be banned from
reaching agreements to fix prices, while business partners will be barred from
agreeing to minimum resale prices, the NDRC said.
China PBOC: To Give Higher
Priority To Curbing Inflation
China's
central bank will give a higher priority to curbing inflation in 2011, the
People's Bank of China said Thursday, boosting expectations that it will adopt
more tightening measures, such as raising interest rates.
China
has adopted various measures in the past few months in a bid to rein in
inflation. The PBOC hiked benchmark interest rates on Dec. 25, the second time
since Oct. 19, which was the first rate hike in nearly three years.
Brazil pledges to stop US 'melting the
dollar'
Brazil has
sounded a new note of warning in the international "currency war" by
pledging not to allow the United States to "melt the dollar". Guido
Mantega, the Brazilian finance minister, raised the prospect of introducing
greater controls on short-term flows of speculative capital into his country.
All of these
come from major media outlets (not exactly at the forefront of investigative
journalism). At this point I actually wonder if Ben Bernanke can even read. I realize that sounds harsh, but
how on earth can he claim inflation is under control? I mean, does this guy
even bother reading anymore? He’s an academic right? Isn’t his entire job
supposed to consist of reading and thinking?
Let’s be
clear here, inflation has already begun to rear its head around the world,
especially in food prices. This is a MAJOR problem for emerging market
economies where food comprises a higher percentage of consumer spending than in
the US. So expect to see food riots and greater civil unrest in many emerging
markets.
And you
BETTER prepare for inflation in the US.
Indeed,
We’ve already seen commodity prices spike across the board in the US in the
last year:
The next
stage is the paper currency collapse: the stage at which inflation accelerates
as the US Dollar collapses, destroying purchasing power while inflation hedges
EXPLODE higher.
Some, like the most popular picks (Gold an Silver bullion)
will records strong gains.
However, others, (the ones that 99.9% of the investment world are currently
clueless about), will go absolutely parabolic.
Get Ready,
Cause It’s Coming.
Graham
Summers
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Again, this
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- advertisements -
Maybe he's a lying whore.
OMG!!!!!!!!!!!! The sky is falling!
NOT!!! Deleveraging disinflationary cycle with willing hyperinflationary participants to go along while speculators make some $$$$$$$
****** Prediction ******
Speculators using Bens ever expanding monetary base will be out of gold/silver/sugar by summer 2011 causing 20-30% drop
agricultural raw materials index will ressume disinflationary 10-15 year secular trend (those with no jobs and no money exert little pressure on the supply/demand price curve) and metals will resume 10-20% annual growth trend representing 10-15 year trend of depreciating fiat currencies
AUG 09 DEC 10
OIL 140 89 -36%
GOLD 940 1400 +49%
SILVER(CPTO) 1.81 2.50 +38%
WHEAT 4200 2800 -33%
CORN 312 240 -29%
POULTRY 88 85 -3%
SUGAR 14 30 +114%
source: http://www.indexmundi.com/commodities/
Aside from using an incorrect date in your first column (2008, NOT 2009), your premise of deflation in the midst of everything Bernanke and the Fed is doing is analogous to shouting warnings of imminent death by drowning while standing in the middle of the Sahara Desert.
That is nice, chap. Summer 2011? Only 6 months to go? Wonder how long a human can live without eating. We'll get the answer empirically, maybe, if we are lucky...
As a European, my silver ACTUALLY IS AT RECORD HIGH now the euro is crashing. Talk about a silver lining :)
That article made me laugh.
Yet, let take a frank look at the situation:
-Ben Bernanke is a guy expectionnally intelligent.
-Ben Bernanke is operating a plan that requires little intelligence to design (the plan is routine for the US)
-The US monetary policy leads to people suffering from starvation and stuff like that.
Well known that the US will not assume responsibility for such a plan. On the contrary, the US will demand a way to deny any involvement in or association with such a plan. The US will buy a cover.
So where does Ben Bernanke's exceptional intelligence show?
In covering the US' tracks. The US wants to commit the perfect crime. That is their demand.
In all likelihood, there is no inflation reported by all the conventional indicators. Just as a guy who breaks into a mansion without showing up on the surveillance cameras, sound no alarms and so on.
People should give Ben Bernanke some credits. His plan is nothing new but he might execute it with exceptionnal talent.
A heist does not mean to be extremelly intelligently targeted. It can be a good old style thievery of a world renowned painting or something. But if you order one, you would prefer it to be carried out in a way that does not let people follow the track up to you.
So, not only there is no inflation but even if there was inflation, it could not be linked to US monetary policy. That is the expectations on Ben Bernanke.
Remember: in a world of thieves, there is only one crime: being caught.
What will happen if Americans, angry and feeling disenfranchised already, see true and sustained price spikes of a proportionally large amount to what those in the developing world are seeing?
Won't they mount a massive and sudden campaign against anyone they feel is culpable in contributing or allowing such inflationary forces, such as The President, The Congress & The Ben Bernank?
"We'll see," said the Zen Master.
The price inflation experienced by the little people is not Bernanke's concern. He sees the hidden (so far) deflation on the balance sheets of his posse, and that is what animates his actions.
IOW, your piddly coffee, gasoline, and "lifestyle" are annoying distractions, just noise, and they will be ignored until the day comes that banks are burning, and suits are swinging on the end of ropes.
Oh happy day!
The average man is voting with is wallet and has left the market. He just said "NO". He'll be ok. The first big heddgie/state/country that says "NO MORE" wins. People will look at Iceland and say, it wasn't all that bad, we can do that.
Pathological liars know how to read. They are programmed to lie no matter what.
Sociopaths know how to read. They are programmed to destroy no matter what.
Sociopathic liars would respond to pitchforks.
"Can Ben Bernanke Actually Read?"
Of Course!
Being a PhD in Economics...
The Bernank reads Fed shill papers by other PhD economists... from the proper schools of course...
All day long.
That is why The Bernank is so clueless about the real economy, Charlie Brown.
You weren't listening to his 60 min interview were you ....if he sees inflation he can raise interest rates Poof.....just like that !
Yeah, Yeah, Yawn, 99.9% of the world are clueless about, bit if they´d just subscribe to your service all will be revealed......Again YAWN
Yeah, Yeah, Yawn, 99.9% of the world are clueless about, bit if they´d jsut subscribe to your service all will be revealed......Again YAWN
Well since Goldman was identified buying all commodities above the bid to drive the commodity prices higher (meaning that the currently higher commodity prices have NOTHING to do with supply and demand), it means that this is some "plan" by the banking overlords (of which Benji is a minion) and the real question is: what is the plan? Is it:
a) to create inflation in the US and Western world and deflate the Western currencies
b) create an economic war on China whose people spend on average 50% of their income on food, causing China to raise wages, while at the same time decreasing the amount of consumer imports the US can afford.
c) pump more money to the banking overlords, who have purchased much of he existing commodities with phantom money (something we cannot do by their rules)
d) increase the number of people who die globally of starvation each day from roughly 30,000 to 50,000
e) all of the above
Which are the intents and which are be the acceptable consequences?
You just don't get it. Food prices are just another sacrificial lamb on the way to the ultimate goal, massive increases in house values. Inflation will take out toxic mortgage loans and absolve gubermint of Fannie and Freddie. It is now the only way out. We are on the inflation interstate, next exit, Hyperville (XXX,XXX,XXX,XXX,XXX,XXX) miles (no rest areas).
Can you "total" your house when a major repair costs more than the home is worth?
Why dissolve Fannie and Freddie when they are Wall Street's best back door bailout tool?
Just ask BofA...
the person is a lying sack of shit.
I dont believe he thinks its his job to manage commodity prices. Hence the focus on "core". So what "inflation" is he concerned about? One word - Wage Inflation. So - the Fed is mainly focused on making sure wages dont rise. They have been most successful at this over the past 30 years. Heckuva job.
All the botox he is using has leaked into his brain
Its not the reading that is the problem...he is reading and lying.
Of course Ben Shalom Bukkake is lying! He is doing his best to EXPORT inflation and thus kill other countries sooner than the USA. So far his plan seems to be working, but then again i would not want to be an American travelling in Europe, Asia, the Middle East or South America. Seems the natives do not take kindly to Americans and their bankster leaders.