I love this headline in today’s NYT:
Ben S. Bernanke’s prepared testimony to a House panel that policy makers are more worried about softening recession than they are about inflation
Instead, it should go something like this:
Ben S. Bernanke’s prepared testimony to a House panel that politicians at the Fed are more worried about softening recession than they are about inflation.
There is a reason why we don’t have politicians controlling the money supply: they will destroy the value of the currency. In Europe, the central bank’s only responsibility is to maintain the purchasing power of the Euro. In the US, the Federal Reserve has a dual mandate: to maintain the purchasing power of the Dollar and to keep the economy growing.
Seriously, how can they even consider lowering interest rates given the following:
* The Dollar is rapidly losing value against foreign currencies; as of today EUR/USD = $1.50
I will be very surprised if gold is less than $1,000 per ounce by the end of the year.