SHUT UP, BEN!
BERNANKE RX IS JUST WHAT MARTS DIDN'T WANT TO HEAR
By PAUL THARP
November 9, 2007 -- Ben Bernanke fielded hostile grilling yesterday by politicians exasperated over the weakening economy and its toll on Americans - and briefly sent stocks tumbling as he conceded harder times are ahead.
The Federal Reserve chairman offered familiar one-liners about watching the economy for "signs of inflation," but did little to appease any of his angry interrogators on the Congressional Joint Economic Committee or Wall Street itself.
...
Rep. Ron Paul (R-Tex.) peppered Bernanke about the dollar's 22 percent loss this year, saying it's wrecking savings of older Americans. "You keep lowering the value of the doller with rate cuts. You're robbing people of their dollars," Paul said.
Bernanke shrugged him off, saying that Americans spend dollars in America, but they lose purchasing power only if they "buy more expensive imported goods."
...
Apparently the people at the secret, private banking company "Federal Reserve" manage to live in America without consuming anything that is imported.
"... Americans spend dollars in America, but they lose purchasing power only if they buy more expensive imported goods."
Imported goods like oil and clothes are increasing in price. Domestically produced food is increasing in price because the fuel need to plant/harvest/transport food has increased in price.
Inflation has been here for a few years, as this is how we are financing the on-going occupation of Iraq. We can tax and/or issue debt to finance wars. We are issuing debt, which has the immediate effect of devaluing the dollar which increases inflation.
