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Ben BernankeIs Federal Reserve Chairman Ben Bernanke stoking inflation? Of course he is. Anyone with common sense knows that if you give $600 billion cash to the banks with no qualifications — as he did with the second round of quantitative easing — they will use it to speculate in the markets. JPMorgan Chase (JPM) just bought $1 billion of copper.

Bernanke’s fatal mistake was that he placed no restrictions on what the banks would do with his $600 billion. If you opened the banks’ books, you can bet that they’ve invested in commodities, currencies and foreign equities and bonds.

Continue reading Bernanke Denies Causing Inflation

Bernanke Denies Causing Inflation originally appeared on BloggingStocks on Fri, 04 Feb 2011 13:30:00 EST. Please see our terms for use of feeds.

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In projecting U.S. GDP growth at about a 2% rate for the remainder of this year and in 2011, I have noted that the two propellants of growth so far in this economic recovery — the inventory revival and fiscal stimuli — are largely exhausted.

But are there other sectors of the economy that might serve as the backbone of any meaningful economic recovery? I don’t see any, especially with U.S. consumers continuing their saving spree, repaying debts and remaining hesitant to spend like they did during the boom times of earlier years.

Continue reading Bleak Prospects for Further Economic Growth

Bleak Prospects for Further Economic Growth originally appeared on BloggingStocks on Wed, 22 Dec 2010 12:00:00 EST. Please see our terms for use of feeds.

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Ben BernankeFederal Reserve Chairman Ben Bernanke will appear on 60 Minutes this Sunday to defend his controversial stimulus package, dubbed QE2, of buying $600 billion of Treasury securities.

In the CBS interview, Bernanke explains his intentions with QE2 and defends the notion that this stimulus will not lead to inflation. He also told CBS that he is not ruling out the purchase of more securities.

Continue reading Bernanke on 60 Minutes: We Could Have QE3

Bernanke on 60 Minutes: We Could Have QE3 originally appeared on BloggingStocks on Sat, 04 Dec 2010 12:40:00 EST. Please see our terms for use of feeds.

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BernankeReuters quoted Federal Reserve Chairman Ben Bernanke as saying: “We’re not in the business of trying to create inflation. Our purpose is to provide additional stimulus to help the economy recover and to avoid potentially additional disinflation, which I think we’ll all agree could also be worrisome.”

Bernanke claims that inflation is below the Fed’s 2% target. That’s hogwash! Sure if you use the “core” CPI, which leaves out food and energy, that may be the case. Not to worry.

Continue reading Bernanke Says He Does Not Want to Create Inflation

Bernanke Says He Does Not Want to Create Inflation originally appeared on BloggingStocks on Sun, 07 Nov 2010 11:10:00 EST. Please see our terms for use of feeds.

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