CAVEAT: THIS BLOG CONTAINS (albeit often very childish) ADULT-CONTENT. DISCLAIMER: Entries at this blog are akin to good old-fashioned campfire chats; I offer no opinion on what you should or should not purchase, or what you should be using or doing. What does or does not work for me could be long country-miles away from your tastes and your needs. Any products, places, and / or whatnots that I review for this blog are purchased at retail price by me. I do not accept payment, gifts, discounts, freebies, products on loan, demon alcohol, drugs, plea-bargains, probation, parole, Presidential Pardons, or sexual favors for doing any review. TRACKING COOKIES: Google et al sticks tracking cookies on everybody. If you are online, you are being spied on; 'nuff said. You may be able to minimize your online footprints by using Tor and Duck Duck Go. Vive la liberté! Vive all y'all! Ante omnia armari. To each of you, thanks for stopping by!

Tuesday, July 15, 2008

Entry for July 15, 2008

The Chairman of the Federal Reserve Board of Governors, Ben Bernanke, today stated the obvious. Our economy sucks and there is no end in sight. He expressed The Fed’s concern about inflation.

It is baffling that The Fed cannot see the obvious; unless The Fed can magically control energy, food, and health care prices, there is not a damn thing The Fed can do about our current inflation. Quite properly, inflation is The Fed’s concern when based on a booming economy fed by low interest loans and easy credit. However, The Fed cannot control inflation in a stagnant economy fed by the rising cost of energy, food, and healthcare. Bernanke needs to quit trying to repair what he has no tools or talent to fix.

The prices of houses are DOWN. Automobile prices are DOWN. The values of our stock portfolios are DOWN. The dividend yield from our savings is DOWN. Employment is DOWN. The purchasing power of our wages is DOWN. Our ability to get a loan is DOWN. If Ben Bernanke believes that a wildly inflationary wage increase is heading our way, he is insane. When sales are DOWN in a depressed economy, just what INFLATION is it that concerns The Fed?

Part of the reason that we have boom and bust economic cycles is because The Fed over-corrects on both the downside and upside. Unless he wants to step forward to accept a large chunk of the blame for our economic mess, Ben Bernanke needs to have a good old-fashioned cup of “Shut the fuck up!”

No comments: