The Sydney Morning Herald reports that investors appeared "optimistic" that U.S. Federal Reserve Chairman Ben Bernanke will unveil "new measures" at the Fed luncheon on Friday. "[N]ew measures"?
There are several ways to further inflate our monetary supply and saturate the economy with cheap money, (i.e., Central Bank "measures"). Problem is we've seen them all before. The "measures" of a central bank are inherently inflationary.
What is Bernanke going to do? QE3, after QE 1 and 2 failed to make a dent in unemployment. Anything the Fed Chairman implements will only perpetuate our phony economy based on government stimuluated consumer spending, spending money we dont have and should be saving.
Open market operations to print money/flood the banks with more excess reserves will further damage the middle class, and continue redistributing the fruits of our labor to the same bankers Bernanke hails himself a Savior for bailing out.
The money created out of thin air will not be directed to those who can best use it. Successful companies and inviduals don't get the new money, it's injected at the point of greatest political pull: the big banks get it first, and like counterfeiters they enjoy the purchasing power before it makes its way through the economy and raises the prices of goods and services the average person faces before he sees a rise in his wages.
There is nothing Bernanke can do to alleviate our recession, except raise interest rates, and any government official in this environment would sooner pull off their own eyelids than hike rates. Of course then the laws of economics would hit our monetary and economic elite so squarely in the face, such austerity will only come when there is rioting in the streets, similar to what's going on in Europe.
Or I could be wrong...maybe Bernanke's been working overtime with his economic chemistry set?
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