Britishsteel

Ben Bernanke's Tightrope Act

google bernakes speech to the economics club in 2002 and read it, its entitled deflation I think . So far everything he stated in that speech and mind you in 2002 inflation was the problem not deflation was a plan on how to combat it and so far all that he layed out as far as steps to take have been used to no effect and we are getting close to his zero overnite rate which along with his plan of taking dollars out of circulation BUT NOT UNTIL IT HITS ZERO that will cause a 20% interest rate and the dow will not be at 20,000. More like 10,000

also in 2004 he said

Bernanke and Reinhart (2004) discuss three alternative, though potentially
complementary, strategies when monetary policymakers are confronted with a short-term
nominal interest rate that is close to zero. As discussed in the introduction, these
alternatives involve (1) shaping the expectations of the public about future settings of the
policy rate, (2) increasing the size of the central bank’s balance sheet beyond the level
needed to set the short-term policy rate at zero (“quantitative easing”); and (3) shifting
the composition of the central bank’s balance sheet in order to affect the relative supplies
of securities held by the public. We use this taxonomy here as well to organize our
discussion of non-standard policy options at or near the zero bound.

now #1 states shaping the expectations of the public on policy settings? How through mass media like kuntlow and cnn hypnosis by media? Bond market sets rates not the feds


# 2 increasing balance sheet of central banks? how they gonna do that? Print more worthless money?


#3 shifting the balance sheet in order to affect the relative supplies of securities held by the public? which means making them the bagholders?

we all got a lot of thinking to do lol