Seeking Alpha

Ron Paul wasn't too enthralled with Bernanke's press conference, of course, lamenting the...

Ron Paul wasn't too enthralled with Bernanke's press conference, of course, lamenting the failure to admit any blame for problems with the dollar, prices or inflation. The Fed "never admits it’s the inflation of the money supply that’s the problem... Bernanke can triple the money supply, and then he wants to duck the issue that he’s responsible."
Comments (122)
  • Econdoc
    , contributor
    Comments (2944) | Send Message
     
    MoRon Paul

     

    I absolutely want to see him do a press conference on monetary policy. Please let's see it.

     

    Would give Jon Stewart enough material for a month of shows.

     

    One more thing - please let MoRon and Trump team up

     

    Trump-Paul

     

    What a delicious ticket. Think of the debates! The soundbites.

     

    Magnificent

     

    Bernanke for President
    E
    27 Apr 2011, 06:19 PM Reply Like
  • bbro
    , contributor
    Comments (10534) | Send Message
     
    Excellent ....a -52....you have to be right....beats my record of -45....
    28 Apr 2011, 04:17 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Bernanke for Sing-Sing, along with his friends in the Wall Street banks.
    28 Apr 2011, 06:48 AM Reply Like
  • kwm3
    , contributor
    Comments (2453) | Send Message
     
    have you read "end the fed"--it may be ghost written, but i found ron paul (or the writer) to be exceedingly smart and very astute in economics and finance. he really knows what's going on and "gets it"... this is a view i definitely do NOT have of most others in congress.
    28 Apr 2011, 10:54 AM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    Who is surprised that Mr. Ben is using an old Obama tactic, the duck and weave?

     

    Econdoc, just because you don't like Ron Paul's politics does not mean that Mr. Ron is wrong on this issue. Thats the trouble with liberals, they want to judge the message based on the messenger rather than the content. What an intellectually flawed argument.
    27 Apr 2011, 07:08 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    When the message is complex, difficult or impossible to refute then the intellectually bankrupt revert to ridicule and name calling. J Stewart makes a living off it. It is certainly easier then engaging on the argument.

     

    I don't agree with Ron Paul but his arguements need to be met head on not ducked.

     

    Donald Trump is also going to be a handful for the people who want to keep the discussion contained to the traditional left and right polemics. DT is not afraid to drop a few F bombs as he makes his points and he is really harsh on OPEC and China which is interesting in that he is condemning WDC for not managing them in any way. That is going to stick because it is true.

     

    Imagine the Trump family in the WH. Endless entertainment.
    27 Apr 2011, 08:46 PM Reply Like
  • AnchorMan
    , contributor
    Comments (115) | Send Message
     
    Neil459 - That's pretty funny! Aren't you doing the same thing you say liberals are doing by making such a blanket statement about them? I consider myself liberal but I like a lot of what Ron Paul has to say when it comes to the economy. I also like some of his other thoughts (abortion, gay rights) as they are consistent with his party's mantra of smaller federal government. unfortunately for him his party doesnt believe in what they sell to the masses, which is why he will never get to the oval office unless he goes independent.
    27 Apr 2011, 11:14 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Trump in the WH? He'll make a reality show out of it.

     

    Criticize J Stewart all you want there's a lot more substance there than name calling. You just don't want to hear it.

     

    I'm really going to listen intently to Trump especially because he single handedly made our President show his birth certificate. What a bunch of bullshit. He's just a big windbag. And his business experience is bankruptcy.
    28 Apr 2011, 12:19 AM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    AnchorMan, you said it all. Very clean and concise. Bravo.
    28 Apr 2011, 12:21 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Monngie

     

    Anyone who wastes time watching J Stewart is not interested in the news but interested in his spin on it. Some of it is funny but cynics are on every street corner so it becomes boring quickly. And frankly he is a Dem and ultimately ends up carrying water for them. That's no more substance than MSNBC or NBC offer up so who needs him? Watch the Last Word with Lawrence O'Donnell but call suicide prevention before the show so they can start early. All the left wing pandering is a pitiful waste of time for any viewer.

     

    Trump is a character to say the least but he is very saavy so let's see how this plays out. I am not sure he is serious but he is having fun with it and the Dem machinery and Obama lackeys are plotting how they get to him. "No we cannot have debates we must demonize and crush everyone in sight. Send out the Brownshirts and break glass and intimidate opposing ideas and clear the streets of the citizens."

     

    Whatever the case we need fundamental change in this country and Obama does not represent that change he just uses the word to make people believe he is the change but actually he is just screwing around with the family car and having fun. He engaged in Libya like a naive boy on his first date kissing a girl. Giggling and not knowing what he wanted to do next. So we blew a lot of money and have a blood enemy in Khadafi and have no idea what the rebels represent. Where is our media? They would be talking about the lack of declaration of war by Congress and questioning his brains if he were Republican. But the media is hopelessly compromised and is more political than the average American. The media is permanently bent over and taking one every day for the Obama team.

     

    But everything is cool in BO's little world. He has most of the media on a leash, has a loyal blind faithful left although some are gritting their teeth and will be the first President that does not age while in office. But when you are detached and are more interested in the cool towels in the bathroom where is the stress?
    28 Apr 2011, 12:45 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Donald Trump as a candidate for Emperor of America? The Donald: you're fired!

     

    Ron Paul is NOT Donald Trump. Ron Paul has been one of the very few national politicians who has seen all this cheating and lying coming for years and he has stood his ground and demanded an accounting. I give him an A+ for perception and integrity -- not many A+ grades handed out to the Wall Street Washington crowd in the last 3 decades.

     

    Is Ron Paul a great candidate for President? I'm not sure. Can we go back to the Gold Standard considering where we are now? Not quickly and easily. We need to raise interest rates; and we need to get taxes out of the very rich who are paying nothing. We need to fix the election process so it is cheap and short and so that the monied class does not own everyone who runs -- or the monied class become the only candidates (Donald Trump, I guess, can pay his own ticket). We don't need more lawyers and more billionnaires running our government.

     

    If Ron Paul agrees with these issues, I'd say he beats all the other candidates I've seen.

     

    At least Ron Paul is honest. That puts him WAYYYY ahead of the crowd.
    28 Apr 2011, 06:54 AM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    Anchorman, no, not doing the same thing. Econdoc's comment was the focus, most mature people understand that generalizations do not apply to everyone. They may not even apply to much more than 50%. But a little more 50% is enough to make a generalization. This is another technique of liberals, that is to take a well found comment and blow it out to the extreme by misrepresenting the meaning.

     

    Anyone that listens to TV or interacts with liberals at all knows that the liberals attack the messenger most of the time. I'm glad your not one of them. And if you don't agree with that tactic, then you might consider chastising your liberal friends when they do this. If this criticism happened by liberals then I would not be justified making this particular generalization.
    28 Apr 2011, 08:59 AM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Say what you will about spin. He backs it up with facts and video.

     

    It's way out of the NO SPIN ZONE.
    28 Apr 2011, 12:27 PM Reply Like
  • Econdoc
    , contributor
    Comments (2944) | Send Message
     
    Dude I am a Republican. And about as big a capitalist that you are ever want to bump up against. And I want government out of my life and the lives of people - and that applies as much to tax policy and spending as it applies to who should and should not be able to have an abortion (let women choose) and who anyone should want to marry (keep freaking government out of a personal choice)

     

    I just hate stupidity on both sides.

     

    Paul and Pelosi are cut from the same cloth. Idealogs hell bent on an agenda that is ruinous to you and me.

     

    Punish stupidity. Put it on my tombstone.

     

    E
    1 May 2011, 02:29 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    "I am a Republican. And about as big a capitalist that you are ever want to bump up against"

     

    Someone who wants "bernanke for president" calling themselves a "capitalist". Now that's classic.

     

    The best part is you tell the rest of us here at SA we "don't understand economics". You're drowning in your own BS. lol.
    1 May 2011, 05:52 PM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    "Dude I am a Republican."

     

    A lot of people have delusions and there are a lot of people in Washington DC that call themselves Republicans, where we call them RINOs.

     

    The key test is this, just ask yourself in the last election was Palin or McCain the true Republican/Conservative?

     

    Or ask yourself, today is Trump or McCain the true Republican/Conservative?

     

    If you answered McCain to either of these then you may call yourself a Republican, but the rest of us will have our doubts.

     

    You say your a Republican, but you attacking the only potential candidates that are standing up to be counted, taking a stand, and for which we know what they stand for. In the end you'll end of voting for someone whom you don't know what they stand for because you'll be too uneasy to vote for the politically incorrect. Thats a pretty liberal tendency.
    1 May 2011, 06:13 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    The only thing wrong with your commentary is the Republicans have no potential candidates. The nation will be better off if they manage to keep it that way!
    2 May 2011, 07:06 PM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    "The only thing wrong with your commentary is the Republicans have no potential candidates. The nation will be better off if they manage to keep it that way!"

     

    No the problem is that all of the Republican candidates that the media will support are just Democrats/Socialists in disguise. Since most people get their opinion served up on the evening news, this means that any real Conservative/Republican candidate will never even get the time of day, let alone any support from the brain dead populous. It also means that good actions that are actually helping the country get destroyed by the time the Democratic media is done with them. An the ignorant just watch the media and believe it.

     

    Of course I don't really agree with you, tax money laundering through the unions and social security/medicare fraud to buy votes is not really a better way to run the country. But I understand Monngle, how it helps you sleep at night. Giving away other peoples money makes you feel good, makes you feel like you are accomplishing something (without really doing anything except voting). What a scam.
    3 May 2011, 08:06 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Paul Ryan is seen as radical by the mainstream press because he has a plan to balance the budget in 10 to 12 years. Dems and Reps argue over the most recent budget and after much tears and moaning claim success after saving a few billion in spending while they don't mention the mountain of debt that is still piling up.

     

    The most radical thing is that the public tolerates the government dropping a few trillion of debt on their heads every year and then tells them they saved a few pesos by holding down the growth of some item that has already grown outrageously in the past 4 years.

     

    Most but not all of the Dems and Reps have been busy trying to make the other party look bad so the can get more power all the while the house burned down.

     

    Maybe voters should agree to outlaw both parties and not vote for anyone who is Rep or Dem so we can get out of this dysfunctional mess.
    3 May 2011, 05:33 PM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    "Maybe voters should agree to outlaw both parties and not vote for anyone who is Rep or Dem so we can get out of this dysfunctional mess."

     

    One of the most sensible things I've heard in a while.
    3 May 2011, 07:07 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2899) | Send Message
     
    When asked about S&P's recent downgrade of US debt, Bernanke said that it was a constructive move that nudges the parties in Washington into the right direction.
    27 Apr 2011, 07:14 PM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    That's funny. Bernanke adds trillions to government debt and points fingers at everyone else saying "Yes, they need to be warned!"
    28 Apr 2011, 06:55 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    MC

     

    Explain how Bernanke add trillions to the government debt.
    28 Apr 2011, 10:18 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Simple, Tomas. By not raising interest rates. By not raising interest rates he is encouraging everyone to borrow more, government, corporations, consumers.

     

    Tightening rates would say NO to more government overspending. But he won't do it.
    28 Apr 2011, 12:29 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    MC

     

    You are lost.

     

    First it is not the Fed's job to appropriate money for federal spending. That is Congress and the President signs off on the bills. The Fed's charter and legal mandate is full employment and stable pricing. They cannot pull an Al Haig and say they are taking over the appropriations process and abandon their legal charter.

     

    Second if we raise rates on this mountain of debt the carrying cost would escalate and we would not have relief yet on the spend side. The debt would actually balloon and we would have to cut even deeper into entitlements and other outlays to balance the budget.

     

    Third we are not yet at full employment and raising rates would definitely not help that issue.

     

    Fourth consumers are drawing down debt if you look at the numbers but why bother with those pesky metrics. Corporations are refinancing debt and borrowing cheap while they can as right now it is cheaper than equity but that is smart and their profits are solid. Government is a disaster as they have structural deficits now that need to be chopped by design not some stupid Fed action.

     

    Fifth much of the debt consumers do hold is marked to benchmarks which would then increase and increase the debt burden of consumers which of course means they have less DI.

     

    You might be an artist and even a good poet but you are not an economist. And looking at Ben as the problem is looking at the symptom not the cause. The root cause is in Congress and the President. And I suppose all the people in the US that want a check in the mail every two weeks for free.
    28 Apr 2011, 01:53 PM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    You're smarter than I am, Tomas. Thanks for straightening me out. I do see that consumers are paying down their debt. I got a chart of the San Francisco Federal Reserve page:

     

    www.google.com.vn/imgl...

     

    At this rate it will only take about 30 years to reduce debt to a reasonable level.

     

    I know that Bernanke is holding interest rates at 0% to try to make it easier and cheaper to finance the debt -- but it also makes it easier to borrow more money, and grow the debt.

     

    I agree that the Government is a root cause. But debt in every sector of the economy: corporate, consumer and government is the problem. And the Federal Reserve has been supplying the junkie with heroin for many years now. Raise the rates and the supply of heroin gets cut off.

     

    We are not going to get through this without pain. Junkies have a lot of pain to become free of dope. Debt is dope to us. Bernanke is supplying the dope. If he stopped, we would start the process of healing (and stop lying to ourselves).

     

    I appreciate your compliments on my poetry, by the way.
    28 Apr 2011, 02:52 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    MC

     

    Ben's charter needs to be changed to get different actions from him.

     

    Actually the fastest changing burden on consumers is rising energy prices and food prices as nobody budgeted for those increases. Unemployment is the wild card. If it stays up that is trouble.

     

    Debt is a tough one. We live in a free country and people can make decisions for themselves and how do we take that away and call ourselves free?
    28 Apr 2011, 03:12 PM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    I think, if we continue to have a Fed, the Fed HAS to make those tough calls -- when we have too much debt, it has to lead the way in making it more difficult to borrow.

     

    I don't think the freedom we love and value is an absolute -- I'm sure you don't either. Freedom and self-discipline need to go together. That's the rub. In a society that believes in only the pleasure side of experience, when we have trouble saying NO to ourselves, then we need a nonpolitical independent body helping us to make decisions -- which is what the Fed is and is supposed to be -- but the Fed over the last three decades, since Volcker at least, has only really been willing to push the easy money button. Yes, there have been periods of tightening -- but if we had not had an almost solid period of easy money we would not have contracted the debt-disease to a level we now have it.

     

    You mention energy costs hurting consumers -- and I would point out that Ben's unnatural devaluation of the Dollar (QE is a very unnatural squatting on interest rates and the dollar) is what has driven commodities (and oil/gasoline) through the roof.

     

    QE is a failed policy. The alternative is scary. But sometimes you have to face the monster in life.

     

    We are still free if interest rates are high and we can't borrow money like it was going out of style. America has been through rich and poor times both -- and Americans have stayed Americans, relative free, during both phases. We haven't had very good parents in our leaders lately. Good parents tell you what you have to do some times. Our leaders have been enablers. I pat you on the back and compliment you -- and you re-elect me.

     

    Times are changing.

     

    I don't see how unemployment can come down when banks aren't lending and corporations aren't borrowing to expand operations. Corporations are borrowing to pay down debt. We are entering the Winter Season of the Business Cycle (the Winter of our Discontent it seems).
    28 Apr 2011, 03:33 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    MC

     

    Change Ben's charter and his behavior will change. It is really quite simple. And Congress owns that charter.
    28 Apr 2011, 09:15 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (4195) | Send Message
     
    The dollar is fine. Let Econdoc continue playing his fiddle in peace.

     

    futures.tradingcharts....
    27 Apr 2011, 07:27 PM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    obviously you don't care about your purchasing power.

     

    grow up, stop counting in dollars and S&P points. Even Gold is going nowhere in AUD and EUR.

     

    Hate to break the news to you but that's it !
    28 Apr 2011, 07:43 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1060) | Send Message
     
    Negative hit me if you want --- and I'm SURE I'll get a ton of them for saying this --- but I would sure rather have someone like Ben Bernanke running monetary policy in this country then an anti-everything politician like Ron Paul. Considering how the Congress and Presidents from both parties have handled the budget of this country over the last 40 years, can you imagine how bad our monetary policy would be right now if politicians with their various political agendas had control of everything like powers advocated by Mr. Paul.

     

    Yikes!

     

    Full Disclosure - at writing I am "long" Ben Bernanke and "short" Ron Paul
    27 Apr 2011, 07:56 PM Reply Like
  • Energysystems
    , contributor
    Comments (1590) | Send Message
     
    Ben Bernanke will go down as the worst Fed Chair of all time. Students for decades will be writing thesis's debunking his economic ideas/policy for years to come. I am a fan of neither party, and this snowball is from years of political pandering rather then addressing the root issues, so we definitely agree there(along with the fact that both parties cater to their political agendas and fundraisers)...but that doesn't make Bernanke a good choice. Lesser of two evils? Possibily, but so far Bernankes tenure is an abject failure.
    27 Apr 2011, 08:26 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Ben reports to Congress...........go to the root of the problem. He is monetizing the debt because it is TOO BIG.
    27 Apr 2011, 08:47 PM Reply Like
  • oaksleeksbeans
    , contributor
    Comments (148) | Send Message
     
    Bernanke and Obama, and Bush before them, were facing a real mess. Do you let the mess play out and not do anything (as it seems many SA readers seem to wish) or do you do your best and intervene as Bernanke and Obama (and Bush) did.

     

    It is a lose lose situation.

     

    Don't do anything and the nation may have really lost it. Or do enough to make a difference and create debt, bail out banks... And make a mess.

     

    Either way everyone gets to complain what an idiot you are.

     

    I am happy to have Bernanke and Obama are at the helm. No they have not been perfect. Alas I have a sense of foreboding about our future.

     

    I am so very tired of extremists like Ron Paul, Palin and Trump.
    27 Apr 2011, 10:25 PM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    exactly the problem, Fed is not independent.

     

    A crony central bank to a crony crooked govt. ; makes my gold and gdx go up though
    27 Apr 2011, 11:25 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    People like Ron Paul and Donald Trump are good for the political debate because they are asking the blunt questions and the elephant in the room questions that our press is not doing because they are too invested in the current paradigm and should just join a political party and call it a day.

     

    Some of the stuff they say is hard to relate to but on the other hand if they ask a question that nobody in power has a good answer for and they are responsible then what's up? Why do we have people that cannot answer a direct question or refute the question entirely?

     

    The most direct question that everyone in WDC is responsible for and has done nothing is our energy policy. What has WDC done in a material way to get the US economy and Americans out of the inflation driving, budget sucking high energy price escalator and where is the timeline to get it done?

     

    The answer is nothing so let's have another hearing on steroids in baseball while the economy burns. This issue alone deserves a clawback in salaries in Congress and the WH as they have failed to protect the US economy just like CEO's failed to protect their companies leading up to the 2008 meltdown. Until WDC feels this kind of pressure nothing is going to friggin happen.
    27 Apr 2011, 11:50 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Worst Fed Chair of all time. You must have a very short attention span. Don't you remember Greenspan. You know, the one that pushed our economy off a cliff. And now you criticize the one that saved our asses from a depression? You must have been vacationing on the dark side of the moon the past two years. You probably think GW was the smartest President we ever had too.
    28 Apr 2011, 12:26 AM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Another Bravo!!!
    28 Apr 2011, 12:27 AM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    The only question I hear out of Trump is, "Where's your birth certificate?". And soon we will get to hear, "Where's your college transcripts?".

     

    There is no political discussion in this country because all the NOT SO FISCALLY RESPONSIBLE Republicans want to discuss hot button issues, scare the $#!+ out of the American people to distract them from what they're really doing and just plain lie to them.

     

    Flag Burning
    Prayer in the public schools
    Nativity scenes on Public property
    Abortion
    Cops on the streets
    Weapons of mass destruction
    Death Panels
    The Republican Party stands for reducing the size of the federal government. (It's been growing government since Reagan.)
    Tax cuts for the rich create jobs

     

    Geez, I could go on and on.
    28 Apr 2011, 12:41 AM Reply Like
  • Dave Faulkmore
    , contributor
    Comments (84) | Send Message
     
    Last i heard Ben Bernank is not running for President. Bernank is the head tool of a banking cartel. They print money last i heard.

     

    Ron Paul is running for President. Head of a country that has to suck up to a banking cartel in order to fund itself. And to change any laws needs to go to politicians that are funded by corporations.

     

    So we are comparing apples and oranges.

     

    We need to ditch the cartel and install direct democracy. Two different fruits. Ron Paul is pushing for the end of the cartel and better looking bitches than Clinton ended up with, for him and his son.

     

    Go bankrupt; it'll be much more entertaining than DT. Electing Ron Paul would be equivalent to reelecting Obama. President doesn't control shit. He just makes pretty speeches.
    28 Apr 2011, 04:59 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    So taking on MORE debt when the 'real problem' America faced and faces is TOO MUCH DEBT is trying to deal with the problem? Is that what Bernanke and Obama are doing? Or are they trying to deny the problem, extend it in to the future, so someone else will have to face it? The Japanese tried that. Look at them now. On their knees facing a wall of water that is really a metaphor for all the liquidity they have pumped in to their economy hoping to deny the reality of suffocation, accrued debt.

     

    How do you deal with the problem? You raise rates; you let those holding bad debt fail. You raise taxes on the very rich who are not paying their fair share (this will take new tax laws probably, since the current laws were written by lawyers in Washington elected for, of and by the rich who wanted lax tax laws) and you cut spending and eliminate the consume, consume, consume mentality of America, beginning in Washington.

     

    The spend, spend, spend problem is NOT a Washington problem. It is an American problem, from New York to San Diego, from Miami to Seattle. Spending is how you prove you are living. Well, that is over: now we save, save, save. We make the Dollar stronger. And we rebuild an American economy with the understanding that buying American comes first. This will require that American manufacturing will need to be Quality One. This is something we need to fix also, the lazy mentality of the spend, spend, spend generation which says, oh, it's close enough. There is much good in america now, still: but we need more discipline as a culture. We can learn from the Germans -- although we do not want to become Germans. Pride in the quality of one's work is a principle the Germans (and the Japanese) seem to understand. This is one principle America can adopt from abroad that will make us a more serious and a more fortunate nation.
    28 Apr 2011, 07:12 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    We are not saved from a Depression. The wall of water is building and the next wave is edging toward us again.

     

    We did not deal what caused the crisis. So we will have to face it again.
    28 Apr 2011, 07:15 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Bernanke is not running for the presidency. He is, sadly, running the presidency now however. Obama has ONE CHANCE to regain his balance and become a legitimate candidate again: Force Bernanke out! I'm not sure he can do that! But he can break from Bernanke and empower Volcker to be more vocal in disagreement with Bernanke. He won't do this, of course -- because Bennie has convinced him that it is either this or 'over the embankment'. Obama is afraid to think for himself on this issue. He is trusting that what's good for Wall Street Banks is good for America. So far, after all the theft, this is an incorrect assumption.

     

    This thievery all began in the early 1980 with the deregulation of the Savings and Loan Industry. The bankers did the same thing them. They issues loans that they knew would never be repaid, collected fees and bribes and....waited for the crap to hit the fan. The Texas bankers (they were the worse) had a saying: "A rolling loan gathers no loss!" They essentially gave their friends money, waited for the crisis to hit, trusting that Washington would bail them out. And Washington did.

     

    Wall Street Banks watched all this -- and had a game plan for their own future. All they had to do was to get Clinton, golden boy Robert Rubin, and Larry Summers to go alone with the Republican Plan. And they did. The rest is repetitious history.
    28 Apr 2011, 07:22 AM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    "Bernanke and Obama, and Bush before them, were facing a real mess. Do you let the mess play out and not do anything (as it seems many SA readers seem to wish) or do you do your best and intervene as Bernanke and Obama (and Bush) did."

     

    What a load of crap. Our politicians are all ivy league educated lawyers. They know exactly what the problem is and how to fix it. They just don't. That includes both sides. Each politician has their own reasons, reasons that have to do with power, money, ego, fame, women, etc. But none of the reasons have to do with preserving America. You might ask why? The answer is that America has been so powerful and profitable for so long that greed, theft, and deceit in Washington DC has not been able to effect the downfall of America. This has created an entitlement environment for politicians that mirrors the general public of "I want mine."

     

    Until we completely change the people this environment will not change. Its only through people like Trump and Palin that this political "I want mine" will change. The only qualifications we need right now are fiscal conservative and outside of the political machine.

     

    This has to counter the "what will this politician give to me" qualification now in place. Until America changes, we will continue to slip into the annals of history as a once great economy and power.
    28 Apr 2011, 09:24 AM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    "The only question I hear out of Trump is, "Where's your birth certificate?". And soon we will get to hear, "Where's your college transcripts?"."

     

    We need this because Obama is a fraud and he committed a fraud on America. Do I care at this point? No. After all Obama has the FBI and CIA that work for him. If he can't produce a fraudulent birth certificate or college transcripts then he is simply an idiot. There is no need to impeach him for this fraud or even to try to prove it. He just needs to be forced to produce the documents.

     

    So why is it important? Because we need to get it out of the way and we need to have a process in place for future presidential elections that vets them properly in the first place, before they obtain the most powerful position in America.
    28 Apr 2011, 09:33 AM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    "You probably think GW was the smartest President we ever had too."

     

    I do think George Washington was one of the smartest presidents of all time.
    28 Apr 2011, 09:36 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Come on: Trump and Palin want theirs too. Remember the 'Bridge to No Where"? That was Palin. Remember: "Let's go in to Iraq and Kuwait and just steal their oil. Afterall, our military is bigger than their military is..."

     

    Palin should be selling real estate; and Donald should be....on television, selling time-shares in Puerto Rico.
    28 Apr 2011, 09:40 AM Reply Like
  • Energysystems
    , contributor
    Comments (1590) | Send Message
     
    Monngie-I said Bernanke WILL go down as the worst fed chair of all time. Personally, I believe right now that title is held by Greenspan. But, I also believe the Bernanke is on his way to being even worse than Greenspan.
    28 Apr 2011, 09:49 AM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    "Come on: Trump and Palin want theirs too. Remember the 'Bridge to No Where"? That was Palin. Remember: "Let's go in to Iraq and Kuwait and just steal their oil. Afterall, our military is bigger than their military is..."

     

    Come one what a load of crap. Michael your better than that and I usually agree with you. But the "bridge to nowhere" was a federal congressional issue. If you recall, Palin was a governor. She was not involved in creating any of the legislation or voting for the passage of it. However both Obama and Biden did vote for the passage of the "bridge to nowhere". Ultimately, the bridge was removed from the legislation and the money given to Alaska's Dept of Trans, she ultimately decided not to go forward with the bridge and use the money for other more needy projects.

     

    These are the facts. Did she make some supporting statements for the bridge? Yes she did. But we need to judge politicians on what they do, not what they say. Judging based on what politicians say is the major problem today. Politicians say everything and then just do what benefits them. Palin is a case of saying a lot of things, but in the end doing the right thing. This is a real difference and its why so many people hate her.
    28 Apr 2011, 09:57 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Monngie:

     

    If you would leave the Dem headquarters and get out of the office once in a while you would notice that nobody is talking about hardly any of those things. You need to update those sticky notes hanging on your wall and tell your boss you need new talking points.

     

    Everything is trivial right now except for debt, currency and financial viability. But I suppose we will have gays in the military come up again or some other distraction.

     

    Get a life.
    28 Apr 2011, 10:25 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    MC

     

    Agree with you comments on debt and our spending problem. Digging the hole deeper does not fill in the hole.

     

    On taxes you are wrong. The Fed gov needs to get spending below 20% of GDP as they are crowding out state and local government and private investment. The pig needs to go on a diet and when did we as citizens agree that they should take our national wealth and drop it from helicopters all around the world and in the US?

     

    And you need to figure out who the "very rich" are and how much you are going to hit them with and how they will react. People living in San Fran and NYC are not living high on $200K per year and their city and state taxes are already very high. Small businesses will just cut staff. Doctors will just raise rates. People will work up to the point where it is not worth bothering with. Companies will replace heavily taxed salary with stock.

     

    The point is capital does not stay in one place and take a beating it moves on or pulls back.

     

    I don't mind raising marginal tax rates on the super wealthy like $500K and above and get rid of tax free muni interest bonds as a lot of income is hidden from taxation in those instruments. You will see the truly wealthy come out screaming when you talk about that move. But the targetting of people in the $200K range is going to result in a lot of changes that will be counterproductive.
    28 Apr 2011, 10:37 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    MC:

     

    Don't give Obama anything to do as that would be hard work and he would rather play buckets or something fun.

     

    Read up on DIDEMCA before you start commenting on the S&L crisis. Sure there was fraud but look at what happened to the S&L's when Congress partially deregulated the industry.

     

    If Wall Street banks knew history like you think they do they would have never been caught holding housing debt but that was not the case. Only Goldman figured out along with some hedge funds that this was pile of poo. Or Goldman just had better risk management in place.
    28 Apr 2011, 10:43 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    All he has to do is start raising rates and he says to Congress: "No more borrowing, no more debt!" It is his JOB and his DUTY to do that. And he refuses.
    28 Apr 2011, 12:31 PM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    I'm not sure $200,000 is the group I care about. I care about individuals with wealth at, let's say, $500,000 and above, and especially corporations who hide their wealth as foreign earnings and don't pay a dime in American taxes, such as GE, GOOGLE, etc, etc.
    28 Apr 2011, 12:34 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Where the heck have you been. They've been talking about his birth certificate for two years now. If they aren't talking about it anymore, it's because there BS has been laid to rest just a few days ago. Now they're just starting on the transcript.

     

    They are constantly beating the drum on these issues. That's what they do a constant drumbeat of BS. And yes, gays in the military is one of their favorites. Anything that will sow hatred, division, suspicion, lies and damn lies is right up their alley.

     

    I have a life. Why don't you sit down on the couch and watch Glen Beck.
    28 Apr 2011, 12:42 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Is this Michael Clark or Nostradamus?

     

    All I know is were a lot better off now than we were two years ago.
    28 Apr 2011, 12:43 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Who is "they"? Cable channel and mainstream media?

     

    That is why you really don't know anything because if you watch any of that crap you are just wasting your life and you actually believe everyone else is locked in to what you are watching and thinking as "they" play with your emotions.

     

    I don't watch any of them but I do hit Bloomberg and CNBC where there is a lot less BS and more analysis. Bloomberg might be the better of the two.

     

    No time to sit on the couch as I have too much to do and Glen Beck is not on my list to watch.

     

    So bring some analysis and hold the "they" BS and your political left wing I am taking one for the Dem team talking points.
    28 Apr 2011, 02:01 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    MC

     

    Those groups you mentioned should pay more. I think the political debate has been demonizing people $200K and above and I think that is too low and is going to be counterproductive.
    28 Apr 2011, 02:09 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    The They is the RNC that feeds FOX, Rush and a host of other liars.

     

    Stick with Bloomburg especially and CNBC.
    28 Apr 2011, 02:51 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Monngie

     

    So you do work in the Dem HQ's. Very nice. Eat your pablum and throw it up in some more comments.
    28 Apr 2011, 03:14 PM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    That's Geithner's job, theoretically, not Bernanke's.

     

    Nobody's doing their job in DC, just playing along with the farce that is DC politics, to the detriment of everybody without lobbyist influence.

     

    There is competition in entertainment, sports, in small local business (not cable), but in global business, politics, there really is no choice. The US political system is designed to allow Dems/GOP to share the spoils and screw the population. I for one will have nothing to do with the system until there is a real alternative, but the corps., GOP, Dems, will not allow real competition (4-5 parties with coherent agendas competing for votes).

     

    No more democracy, no more republic, the people have no voice. Just a corporate/political insider controlled farce.
    28 Apr 2011, 07:50 PM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    Where are Trump's bankruptcy filings ?????
    28 Apr 2011, 07:51 PM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Monngie:

     

    Revisit this issue two years from today. The question is: is the depression over. In 1935, many 'positivists' were claiming that we had escaped the depression by the skin of our teeth. A depressions has many tentacles, social, political, personal, and many symptoms, such as massive unemployment that leads to social chaos, revolt of peoples against their government, civil wars, foreign wars...one can't myopically read the stock pages and think they know about the depression.
    29 Apr 2011, 08:19 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Actually, when Volcker started raising rates in the early 1980's he put the whole government on notice. They tried to impeach him.

     

    The Fed Chair is supposed to be independent so he can raise rates to stop overborrowing and overspending and lower rates when its time to start another expansion.

     

    The Fed Chair is supposed to be a leader. Volcker was. Bernanke is a follower.
    29 Apr 2011, 08:24 AM Reply Like
  • oaksleeksbeans
    , contributor
    Comments (148) | Send Message
     
    It seems to me that the powers keep us busy with idiotic news, creating the tea party, taking away benefits, Beck... while they quietly rob us.

     

    And we (the people) are too busy worrying about birth certificates, abortion, Palin, gays... to notice.
    29 Apr 2011, 08:42 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Guys

     

    How many Fed chairmen can you name?

     

    There have been some real doozies for CB's in the past which you don't know about and it is an almost impossible job when the fiscal side of an economy is out of control and dysfunctional.
    29 Apr 2011, 09:53 AM Reply Like
  • Dave Faulkmore
    , contributor
    Comments (84) | Send Message
     
    Or Bernank took to heart Volcker's hard learned lesson.
    29 Apr 2011, 08:08 PM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    they rob you with inflation, devaluation (both related), and taxes on nominal income.

     

    for example 100,000 is the new 80,000.

     

    but you need to earn 110,000 to earn 100,000 because you pay tax on nominal income, not real income adjusted for inflation.

     

    people are just soooo easily fooled.
    29 Apr 2011, 08:13 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Loved watching Volcker testify before Congress back in the 80's smoking his cigar and not answering questions or answering them so they could not understand the answer. A few congressmen were so rattled they kept calling him Mr. President.

     

    Volcker did not care if anyone liked him and he was about 6' 7" and pretty intimidating.
    30 Apr 2011, 12:45 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    I agree, Tomas. A real leader doesn't care if he's loved. He has a mission to carry out -- and that's it.
    30 Apr 2011, 01:23 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    "They", is the RNC, their news network FOX, then we can work our way down from Crying John Boner to each of the Republican candidates for President to the Teabaggers.

     

    That enough analysis for you?

     

    I don't need talking points. Its very clear to me since they've been conducting this strategy since Reagan. They are persistent and consistent in their diatribes and lies. My list was the short list!!!
    2 May 2011, 07:18 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    I have to admit that our economic health is tenuous. But, I've seen us go through a lot of crap in the past 60 years. I can remember when we thought we would never be able to pay off the debt Reagan left us with. Yes, he was one of those NOT SO FISCALLY CONSERVATIVE REPUBLICANS.
    2 May 2011, 10:31 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Monngie:

     

    Go back to your Dem masters and lick their boots and know that you are their obedient little lap dog as you bark out their talking points and cry about Fox news and whatever else.

     

    This country is far enough left that anything right is shocking! But it does not matter as we have went into the ditch and the financial axe is doing what reasonable policy makers would not do. I could care less about the parties as they have destroyed a lot of this country and my loyalty is to the country not a political party.

     

    Nothing is clear to you until you get out of the Dem HQ's and get a real grip on economics and finance and not all of this kindergarten politics.
    3 May 2011, 05:40 PM Reply Like
  • Dave Faulkmore
    , contributor
    Comments (84) | Send Message
     
    Take a look at the chart for gdx. Talk about volatile. Unless you are into watching charts go up and down (i refer to this as masterbating on charts) and guessing the tops and bottoms, don't think the average investor should touch gdx.

     

    stockcharts.com/h-sc/u...

     

    Or am i missing something?

     

    Disclosure: I'm a doomer. Long PMs. Think the actions of Bernank, Congress, both parties, and President are irrelevant at this point. Taking bets on which falls first: Japan, Europe, or US. Place your bets. And state why. Optimists or party sympathizers not welcome. You're boring us to tears.
    10 May 2011, 05:59 AM Reply Like
  • rawdawg
    , contributor
    Comments (7) | Send Message
     
    Ron Paul has been right all along.
    27 Apr 2011, 08:29 PM Reply Like
  • Andy Harless
    , contributor
    Comments (95) | Send Message
     
    I generally disagree close to 100% with Ron Paul about monetary policy, but he has a point about this. I think most US economists (including me) would consider the weak dollar a good thing, because it helps address the longstanding trade imbalance and the weak economy by making US goods more attractive. It should have been an intentional result of QE2 (as the exchange rate is a standard transmission mechanism for monetary policy in an open economy), but Bernanke isn't even acknowledging it as a side effect. And monetary policy (if it's working) certainly has a role in rising prices, too, since some prices are more flexible than others, and the flexible prices rise when the economy starts to recover. It's like there are certain things Bernanke isn't allowed to say, but it doesn't help his credibility.
    27 Apr 2011, 08:39 PM Reply Like
  • AxiosCap
    , contributor
    Comments (298) | Send Message
     
    If we really made anything anymore you might have more credibility. IMO, it's abundantly clear that weak dollar policies are destructive as is the idea that the Fed can 100% control inflation and the manipulations they are manufacturing. This is all a big farce. We need to get back to sound money, balanced budgets, and a low and flat tax system. We pay a mountain of money in taxes when one takes into consideration everything that's is taxed and how much. Why? To feed the beast in Washington because politicians think we are too stupid to make decisions for ourselves.
    27 Apr 2011, 10:22 PM Reply Like
  • kwm3
    , contributor
    Comments (2453) | Send Message
     
    thank you for saying it. a weak dollar is the best policy at this juncture. it hurts imports which may make the US more self-reliant and it should make exports more attractive to countries that are actually growing. of course it hurts foreign travelers and may cause temporary inflation, but who cares? i think the naysayers merely have a visceral reaction to the word "weak," or else they do not understand econ. well, they better get used to it because it's the right thing to do and Ben knows it.
    28 Apr 2011, 06:49 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Bernanke has no feed-back system. He is traveling in a closed box in which no criticism is allowed.

     

    He said that he and Hank Paulson were 'flying by the seat of our pants, making things up as we went along' in 2008, after letting Lehman fail (Goldman's chief competition), and then saving Goldman and all the Goldman alum running other banks.

     

    In truth: he is still flying by the seat of his pants, making things up as he goes along. But, without a feedback system, he can't know or acknowledge that there is a negative side affect. That his anti-dollar policy (he wanted to blow another bubble in stocks, commodities, and housing -- but housing hasn't gone along with the plan) is causing commodity prices to jump off the planet, causing riots and revolutions along the way.

     

    No feedback system: it's a form of madness. Look for Moby Dick's Ahab as a perfect example in literature of a man on a mission from God who has no feedback system.
    28 Apr 2011, 07:27 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    MC

     

    Ben has a feedback system and it is the Board of Governors who are pretty smart in their own right and independent. The 12 reserve banks. Congress whom we apparently elect. The President. The financial press.

     

    Who are you looking for that is not included? Some little old lady from Topeka who breaks off from the Price is Right and waddles to the phone and says keep my cable bill paid?

     

    Who would be the feedback loop? Most Americans are too stupid to even understand the issues. Our Congress is too stupid for the most part and they have all day to analyze these issues.

     

    We have a complex economy and an undereducated population. That is a great combination.
    28 Apr 2011, 10:48 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    I'm remember when Alan Greenspan had a feedback system of the Board of Governors. If someone challenged Alan, they became a non-person.

     

    I was actually talking about Ben's personal psychological feedback system. Yes, he has people who tell him he's wrong, full of crap, even the devil. But I don't think he hears any of it. He is the same guy who has been wrong in nearly every public pronouncement he has ever made -- without seeming to lose confidence that he is ALWAYS right.

     

    Perilous perspectives of our fearless leader -- leader of the global economy recovery plan -- 'more debt through more bubbles means more fun for everyone'....

     

    The following are 30 Ben Bernanke quotes that are so stupid that you won’t know whether to laugh or cry...especially considering that this man is captaining our boat through the dangerous waters of economic destruction. In 2008 Ben was still saying housing was ok, the economy was ok, and that he really wished he was 'omniscient' so he could have seen the crisis coming' -- after thousands of bloggers and financial journalists began warning the world that a crisis was coming starting in about 2002.

     

    This is what I mean by no psychological (mental/emotional) feedback system.

     

    #1 (October 20, 2005) “House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.”

     

    #2 (On 60 Minutes in response to a question about what would have happened if the Federal Reserve had not “bailed out” the U.S. economy) “Unemployment would be much, much higher. It might be something like it was in the Depression. Twenty-five percent.”

     

    #3 (February 15, 2006) “Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”

     

    #4 (January 10, 2008) “The Federal Reserve is not currently forecasting a recession.”

     

    #5 (When asked directly during a congressional hearing if the Federal Reserve would monetize U.S. government debt) “The Federal Reserve will not monetize the debt.”

     

    #6 “One myth that’s out there is that what we’re doing is printing money. We’re not printing money.” (This is true literally -- they are printing electronically by adding numbers in spreadsheets.)

     

    #7 “The money supply is not changing in any significant way. What we’re doing is lowering interest rates by buying Treasury securities.”

     

    #8 (November 21, 2002) “The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost.”

     

    #9 (March 28, 2007) “At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”

     

    #10 (July, 2005) “We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though.”

     

    #11 “Although low inflation is generally good, inflation that is too low can pose risks to the economy – especially when the economy is struggling.”

     

    #12 (February 15, 2007) “Despite the ongoing adjustments in the housing sector, overall economic prospects for households remain good. Household finances appear generally solid, and delinquency rates on most types of consumer loans and residential mortgages remain low.”

     

    #13 (October 31, 2007) “It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions.”

     

    #14 (On the possibility that the Fed might launch QE3) “Oh, it’s certainly possible. And again, it depends on the efficacy of the program. It depends on inflation. And finally it depends on how the economy looks.”

     

    #15 (November 15, 2005) “With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.”

     

    #16 (January 18, 2008) “[The U.S. economy] has a strong labor force, excellent productivity and technology, and a deep and liquid financial market that is in the process of repairing itself.”

     

    #17 “I wish I’d been omniscient and seen the crisis coming.” (It really did not take omniscience to see the crisis coming: it took a a lack of blinders is all. Thousands of people predicted the crisis beginning in about 2002.)

     

    #18 (May 17, 2007) “All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system. The vast majority of mortgages, including even subprime mortgages, continue to perform well. Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable.”

     

    #19 “The GSEs are adequately capitalized. They are in no danger of failing.”

     

    #20 (Two months before Fannie Mae and Freddie Mac collapsed and were nationalized) “They will make it through the storm.”

     

    #21 (September 23rd, 2008) “My interest is solely for the strength and recovery of the U.S. economy.”

     

    #22 “Economics has many substantive areas of knowledge where there is agreement but also contains areas of controversy. That’s inescapable.”

     

    #23 “I don’t think that Chinese ownership of U.S. assets is so large as to put our country at risk economically.”

     

    #24 “We’ve been very, very clear that we will not allow inflation to rise above 2 percent.”

     

    #25 “…inflation is running at rates that are too low relative to the levels that the Committee judges to be most consistent with the Federal Reserve’s dual mandate in the longer run.”

     

    #26 (June 10, 2008) “The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”

     

    #27 “Not all information is beneficial.”

     

    #28 “The financial crisis appears to be mostly behind us, and the economy seems to have stabilized and is expanding again.”

     

    #29 “Similarly, the mandate-consistent inflation rate–the inflation rate that best promotes our dual objectives in the long run–is not necessarily zero; indeed, Committee participants have generally judged that a modestly positive inflation rate over the longer run is most consistent with the dual mandate.”

     

    #30 (October 4, 2006) “If current trends continue, the typical U.S. worker will be considerably more productive several decades from now. Thus, one might argue that letting future generations bear the burden of population aging is appropriate, as they will likely be richer than we are even taking that burden into account.”
    28 Apr 2011, 12:44 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    awesome Mike! I love it. These are the quotes that put the Bernank shoe lickers in a total spin cycle.
    28 Apr 2011, 01:36 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    MC

     

    Can't read them all or even validate them but they sound like a lot of the stuff coming out of WDC. The story is ever evolving.

     

    If that is a crime then let's ring fence WDC and make it a prison because they all belong in it.
    28 Apr 2011, 02:18 PM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    I agree. Let the reformist come in and clean up the whole mess in both NYCity and Washington.
    29 Apr 2011, 08:21 AM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    when you are no longer self sufficient in manufacturing, energy and services, you cannot allow import prices to jump by devaluing your currency. this creates inflation, killing profits, and reduces end demand. US economy suffers from a lack of demand, and this is not improving, no matter how many FRNs you print.

     

    just as US corporations benefitted from global growth, they will now suffer from global inflation, not just US inflation. you can't just take the upside and ignore the downside of globalization.

     

    as for imports, there can be no substitution effect when there are no substitutes.
    30 Apr 2011, 02:35 PM Reply Like
  • Andy Harless
    , contributor
    Comments (95) | Send Message
     
    US imports are only about 16% of domestic absorption, so the inflation produced by a weak dollar would not be disastrous. Inflation abroad is happening in large part as a necessary adjustment of the real exchange rate (along with disinflation in US value added). The process will continue until the real exchange rate adjusts. It would be much simpler, quicker, and less painful to have the adjustment take place via the nominal exchange rate rather than relative inflation rates. In fact, in many cases there are US products that are substitutable for foreign ones, and in the general case, substitutes can be developed if there is an incentive to do so. Keeping the dollar strong would take away that incentive and essentially throw sand in the wheels of progress.
    2 May 2011, 10:53 AM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    Assuming you are right, wouldn't this cause a major recession in Rest of World, and hurt US MNCs profits, also hitting the S&P ?
    2 May 2011, 11:22 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Of course it would. Higher rates everywhere. Which, of course, is good for the US banks and carry-trade profits, especially if the Fed keeps interest rates at 0% over here. It's every man (every nation) for himself, and God against all.
    8 May 2011, 02:17 AM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    Agreed, weak dollar & inflation as far as the eye can see.

     

    Seems to me just a devaluation game all around, with the huge amounts of debt everywhere. Looks to be good for Gold.
    8 May 2011, 12:08 PM Reply Like
  • valueinvestor123
    , contributor
    Comments (327) | Send Message
     
    Ron Paul is the only person who will actually try and bring about real change. Everyone else is a friend of wall street. I like the chart in the following link because it shows that the market for the year is up around 1% when you take into account the declining dollar.

     

    www.zerohedge.com/arti...
    27 Apr 2011, 08:41 PM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    I'm inclining to agree with you.

     

    The stock rally is a huge farce. Take a look at the Gold/Dow Ratio chart and you will see that, with this inflation adjustment, the Dow has been going straight down since 2001 -- and is still going straight down.

     

    www.google.com.vn/imgl...

     

    Money in one pocket and out the other.
    28 Apr 2011, 07:31 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Many don't seemed to be very "enthralled" by Econdoc's comments on both this thread, as well as many others.
    27 Apr 2011, 08:46 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    Ron Paul is far from perfect, however he brings to light a political courage that most don't dare. He raises key questions and points regarding the completely destructive monetary policy being forced upon our country and especially the middle class. Bernanke's unilateral power must be questioned and ultimately stopped.

     

    As for (e)condoc?...well I kind of enjoy his ego fueled pro-Bernank arrogant rants. Much like watching a train wreck...you know you should, but just can't look away.
    27 Apr 2011, 09:21 PM Reply Like
  • joe kelly
    , contributor
    Comments (1807) | Send Message
     
    I appreciate a good righty bashing as much as anyone. I can get that at any one of ten million blogs.

     

    The real question is how do we use what Bernanke said to make money. Capitalism before political ideology is one of my mottos.
    27 Apr 2011, 09:23 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    joe,

     

    That's easy...silver, gold, oil, short dollar.
    27 Apr 2011, 09:31 PM Reply Like
  • ebworthen
    , contributor
    Comments (2811) | Send Message
     
    QE to continue but in stealth mode.

     

    Stocks are little different than Gold or other precious metals as the value of all are based on perceived value, versus reality; so choose your poison.

     

    An ounce of gold is universally valued, whereas 100 shares of GM or Exxon or Berkshire Hathaway are much more limiting.

     

    Ben Bernanke is either a highly skilled liar or delusional and believes his own lies. Based upon his quavering voice today...I'm still not sure which it is.
    28 Apr 2011, 01:29 AM Reply Like
  • nobby73
    , contributor
    Comments (1177) | Send Message
     
    Stocks are different to gold because you don't buy the assets, you buy the cash flows. The effect of devaluing the currency is to devalue those future cash flows. The grand theory is a weaker Dollar is positive for overseas earnings, but this only accounts for 30% of S&P earnings. It raises input costs, and raises manufacturing costs for overseas production (about 50% of output is overseas).

     

    Markets rallied strongly on the news that there is no QE3 for now, GDP has deteriorated and the deficit is reaching alarming levels. Equities take a moment to ignore bad news and rally, or rally on good news (look at Amazon, as an example).

     

    The US economy is kept alive by ZIRP, QE and 10% deficits and this simply cannot continue, despite how much the corporate sector would like it to.

     

    Gold is sending a strong message and oil is only going up. There is very little time left to do the right thing...
    28 Apr 2011, 02:03 AM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    "The real question is how do we use what Bernanke said to make money. Capitalism before political ideology is one of my mottos."

     

    Unfortunately its the political ideology of a lot and its part of the problem. You need to ask yourself only one question.

     

    What good is making money if the government goes back to taking 75 or 80% of it, forces you to participate in the public healthcare system that has death panels and limits most procedures, generally takes almost everything from anyone who is not mega wealthy and in the political elite, or takes you 401k to fund social security.

     

    Most people don't want to believe it, but the current political elite want to suck the life blood out of the middle class to fund the government and buy more votes by giving that wealth to the less fortunate. For a long time we have been so wealthy and powerful that that ideology did not matter. Today, with our debt, it does matter and unless more people take action to stop it now we will eventually get to the point where it is not possible to stop it. We may already be there.

     

    So you can make some short term profits while Rome burns, but I hope you are not under 40. Because of you are and you don't start caring you will not have an enjoyable retirement (unless of course you screw other Americans by becoming part of the political elite.)
    28 Apr 2011, 10:16 AM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    Gold is going nowhere in EUR, CHF, AUD. Real money.

     

    Only against the USD.

     

    Just a historical anomaly that commods are priced in dollars.

     

    Got the Memo ????.
    28 Apr 2011, 07:55 PM Reply Like
  • ebworthen
    , contributor
    Comments (2811) | Send Message
     
    The nathering nabob's appear quite restless....
    29 Apr 2011, 05:18 AM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    spot on. and at some point high oil prices will become very deflationary as demand destruction kicks in.

     

    the gap between QE2 and 3 will be good for bonds, bad for risk assets.

     

    good time to take some profits and get back in later.
    1 May 2011, 06:19 PM Reply Like
  • Mycroft
    , contributor
    Comments (954) | Send Message
     
    Ron Paul is the only one in Washington who is acting like an adult and is willing to take on the special interests and save this country. Thomas Jefferson is rolling in his grave from what's going on in Washington. My payroll taxes are 30 cents of every dollar I make as my corporation has to pay an additional percentage of every dollar I pay myself. Talk about a silent partner!

     

    Mycroft

     

    www.mycroftmall.com
    27 Apr 2011, 09:33 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Econdoc,

     

    Crony Capitalist of the year, for sure!
    27 Apr 2011, 09:40 PM Reply Like
  • Jackson999
    , contributor
    Comments (468) | Send Message
     
    Did we get any "compassionate conservativism" under Bush? Did Obama deliver on the "Hope & Change" promise?

     

    Professional politicians are all liars and scumbags.

     

    So why not vote Trump? Imagine the fun! Maybe he would get something good done? At least we could help the Idiocracy world come true. :)
    27 Apr 2011, 09:51 PM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Trump is a Roman Emperor wanna-be. Let's find someone more real than him. He's just a crook who made a killing in real estate who got his money from his rich dad and never looked back. He's just a loud mouth rich kid with a flabby understanding of everything.

     

    Look at Ron Paul -- integrity -- and look at Donald Trump -- decadent, flatulent, piggish, with that fake hair comb-over -- and see which of the two would make a better leader.

     

    Trump wants America to become like Rome, to use its army to steal resources from the rest of the weaker world, which is what the Germans did under Hitler and the Japanese under the banner of the Rising Sun.

     

    I agree with what you say about professional politicans. But Trump is even worse: he's a professional business thief.

     

    Le Donald: you're fired!
    28 Apr 2011, 07:37 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    MC

     

    Trump has one good point and that is why are we going to war all over the place? Why are we spending our national treasure and blood for the benefit of someone else and we get nothing back but the middle finger? We are stupid if we spend money to enrich somebody else and then give them more money every month forever for their products. Trump is challenging the CW that is bankrupting us and basically saying let's stay home or somebody needs to pay us a lot of money to take on these problems because we are not the world police. That is not your Roman Empire and Hitler BS.

     

    Trump has definitely taken care of himself but how many companies have used the bankruptcy laws so why get bent out of shape? And who wrote the bankruptcy laws? And do you even understand how those laws help our economy? And who lent him the money? Perhaps he could help us through our pending bankruptcy. LOL.

     

    Maybe we need someone who knows how to be selfish for the interests of the American people. Because right now we have been sold out by our politicians and a ton of money going out to all kinds of places and people that are not US Citizens.

     

    Keep DT and RP in the race to challenge the CW and let's have some blunt discussion and out of the box ideas because all the inside the beltway crowd has made a superb mess of a great country.

     

    MC you are only hired for poetry.
    28 Apr 2011, 11:05 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Tomas:

     

    Please, don't tell me American foreign policy hasn't been selfish enough throughout history. We've bullied and manipulated third world countries and non-white races time after time again until they finally gave in to the American Way of Life -- that is, to have our comporations take over their countries and making their local collaporators rich as Croesus while the masses festered in poverty, disease and despair. Our historical record is rather black in this area.

     

    If we need anything, we need some foreign policy that isn't designed to make US corporations richer. Name me one war we've fought that was not about more money for American corporations. Out of our many wars, there might be one or two. We pretend to be idealistic -- World War II, certainly had an idealistic side -- but taking over 3/4 of the world for American Style Capitalism was also at the root of things. We're pretty selfish as a culture, just like everyone else. Our foreign aid -- so generous and all -- is actually a bribe to keep nations open for American business.

     

    As far as the Donald knowing how to play the bankruptcy rules, hire him as a consultant, not as a president.

     

    I don't mind having the Donald in the race. He makes good copy.

     

    Ron Paul is a more substantial candidate and he DEFINITELY needs to be in the race in order to keep all the Washington lackey-types sober.

     

    How much will you pay me to be the National Poet? I'd probably do it for free, but don't tell anyone. (With all the spending cuts I'm pretty sure the Poet Laureate position will be the first to get axed. And I'd probably agree that it should get axed. Poets who don't struggle to survive probably aren't worth much.)
    28 Apr 2011, 12:57 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    MC

     

    Nothing like angst and hard times to make good poetry.

     

    Wars we fought that were not for US corporations........Ko... comes to mind. All the wars in the early part of our history were not for corporations as our corporate sector was not developed.

     

    Your view on history is the typical America bad everyone else somehow better. And we never do anything for altruistic reasons. We eat young children and dance on their graves at night. Frankly we have our dark spots but I can go through the history of every country, tribe and nation and peel back the lid and show a cess pool of crap that they all keep hidden as they shine up their images and try to forget.

     

    Here in the US we blast our own history and are cynical about everything not understanding that nobody else is going to give us any credit especially if we cannot give ourselves any credit. If we don't believe in anything we have done or stand for why should anyone else? At the same time people are still coming across the border thinking there is something worthwhile in the US worth risking life and limb over. I guess they are stupid. But nobody is breaking into Russia with bated breath or China.

     

    After WWII we were the majority of the world's GNP. We had to build up the world just to make sure they could feed themselves. We could have given Japan back to the Emperor and reinstalled the Nazi's in Germany. That would have been smart. What else are we going to encourage but what we know? And since it was our dime then it is our call. They can change it when they get back on their feet and they can change it today if they want. Funny thing is that China and Russia have been adopting capitalistic principles and nobody has put a gun to their head.

     

    So our corporations did a lot of evil things? First I am not sure you can call them "our" corporations. We don't own them outside of GM and AIG. They can really do what they want and they can get sued by other countries also and that is not our problem. If they are not good citizens elsewhere then they will have to take the consequences.

     

    So our foreign aid is a bribe. What do we get back from all the African nations that is worth the investment? We don't get back squat but that is fine because one can see the need.

     

    I like DT and RP in the race. It is going to stir up serious in your face discussion which of course career politicians do not want. I am not a gold bug like RP but he is definitely pointed in his comments and engages in honest and has depth to his thinking which I like. DT comes from another angle but he is also asking very tough questions and whether one agrees with his remedies or not the questions are what are really important.
    28 Apr 2011, 02:40 PM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    No, I'm seeing America's good side. I'm just not ignoring the bad side. We saved the world from the fascists during World War II -- that was good. But we also got a huge reward for doing so: 3/4 of the world became a personal marketplace for American goods.

     

    Both sides exist.

     

    I'm not an America-hater. But I want to see both sides so I don't become too energetic is supporting a half-truth.

     

    The American Revolution was about American business, at least that 's what sent us into open conflict -- which I support and would always support. The War of 1812: again about American business, but also against a bully trying to tell us how to live. The Mexican War. Not so sure about this one. The Civil War. That was different and quite complex, with real moral issues and attempts by both side to gain economic advantages. The Spanish American War. Not so sure about this one either, although kicking Europe out of America was generally a good thing. The American Wars against the American Indians. This was clearly economics -- but I'm not sure it was historically avoidable. Symbolically this was the Day Cycle demolishing the Night Cycle and establishing the Day-Cycle expansion mode. Karmically, we are still paying for this however -- and we will pay for a long time....

     

    Our corporations have tended to operate with the stamp of approval of the American government and the backing of the American military -- this has been very persuasive in Latin America; it has been resisted a bit in Asia. In Africa, we have had mixed fortune.

     

    Foreign aid in Africa: we get back governments who become our friends and keep communists from gaining power (or friends of our enemies, such as Al Qeda). We may see the capitalism-communist duality die soon and be replaced by a religious ethic: Christianity against Islam. As the Arab Spring rises, does it rise as democracies hungry for civilization, or as a global army of jihadists taking back the world for Allah? It will be interesting to see.
    28 Apr 2011, 03:45 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    We have a lot of money going to Africa through charities and the UN. Not sure that gets us a direct bang for the buck as we lose control of it. I do agree that tribalism and religious strife may take over which is an export of Arabia which we also fund indirectly. Disgusting.

     

    The Am Revolution was really about a detached King and political and social elite making laws that affected Americans without any input from them or concern for them. And looked at America as a place to plunder for a higher standard of living in England. This went beyond economics. That lack of respect and abuse led to revolution.

     

    Detached King and political elite.............hmmm... Kind of reminds me of the US today.
    29 Apr 2011, 10:08 AM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Tomas. Have to agree. Colonialism makes for bad political alliances and bad policies and always engenders a response.

     

    America has been a pretty benign world ruler so far, compared to most of the others in history. I hope this continues, but detached kings and a corrupt political elite...yes, you already said it...makes for bad policy.
    29 Apr 2011, 01:11 PM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    After and IQ and AF nobody wants US involvement, either on the military or human rights sides of the aisle.

     

    Africans prefer to work with China and Brazil, quiet, profitable business and they can easily manipulate their poor populations.
    29 Apr 2011, 08:15 PM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    TVP, MC,

     

    Trump deserves some credit though for consistently screwing his creditor banks. In light of what the Banks have done, he must have been very clever and aggressive to have swindled the swindlers.

     

    Ron Paul would be the best hope for some real leadership, it would shake foundations all over Washington. I for one would be impressed with this development.
    30 Apr 2011, 02:41 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Trump says when you borrow a small amount of money you have a lender when you borrow a lot you have a partner. In the latter case you have more leverage.
    1 May 2011, 01:02 AM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    ...and when you borrow a ludicrous amount, you must own a printer.
    1 May 2011, 09:32 AM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    "Ron Paul would be the best hope for some real leadership, it would shake foundations all over Washington. I for one would be impressed with this development." - fxmaven

     

    No truer words spoken. (however, with those words, you have just invoked the "Bernanke for President" clown caboose club, aka-thumbs down troll.)
    1 May 2011, 09:35 AM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    NO, what Trump says is barrow a ludicrous amount of money then declare bankruptcy!!!!
    2 May 2011, 10:22 PM Reply Like
  • Michael Clark
    , contributor
    Comments (10024) | Send Message
     
    Well, we're half-way there. Now all we have to do is raise interest rates and declare bankruptcy.
    8 May 2011, 02:19 AM Reply Like
  • rick flair
    , contributor
    Comments (369) | Send Message
     
    instead of calling them economists or liberals , just call them ckskrs and child molesters...far more acurate description....
    27 Apr 2011, 10:45 PM Reply Like
  • User 509088
    , contributor
    Comments (1304) | Send Message
     
    paul always talks his book- atlas shrugged.

     

    the great men who lead a company let the worm-like workers screw up americuh

     

    yet in reality it wasn't the workers who dismantled earnings power, it was right wingers and the politicians they recruited and trained and controlled who flushed jobs.

     

    no jobs no tax income can't pay the police to come out to the gated community to deal with the hispanic kid begging at the front gate

     

    whut's happind to amuricuh? prometheus (god of workers) shrugged
    28 Apr 2011, 06:33 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs