Bernanke Accidentally Points Out that the Dollar is Dying
Obviously they're stretching here in the hopes that we're too stupid to realize a strong stock market is actually BAD for any of us who use, spend and/or are paid for in dollars. Doesn't everyone who matters already know that strong stocks equal a weak dollar in this post-9/11, hypermanipulated economy of ours? I guarantee you most of the suckers holding dollars know that - except, of course, for the morons (psst, that's you guys, America) getting paid in them.
WSJ's Real Time Economics:
In recent weeks, the Federal Reserve has been turning to an unusual metric to prove the potency of its bond-buying program: the stock market.
Comments from Fed Chairman Ben Bernanke and other officials, as well as research by the central bank, cite rising stock prices as a sign that the central bank’s $600 billion bond-buying program is working to bolster the economy.
The focus on stocks puts the Fed in an unusual position, given that equity moves haven’t usually been a focus of the monetary-policy process. The shift could be benign, or a sign of trouble.
In other words: "Our policies have contributed to a stronger stock market just as they did in March 2009 when we did the first iteration of this program," Bernanke said at a Federal Deposit Insurance Corp. forum on small businesses. "A stronger economy helps small businesses more than larger businesses. Interest rates are higher but that's mostly because the news is better. It has responded to a stronger economy and better expectations."
Fuck! Did he just admit that? He did. Watch it backfire before his very eyes.
Bring on the chart porn (via A Dash of Insight). Someone make sure Bernanke gets a copy of this, it may be news to him.
So I ask the Fed, is this really the relationship you want to point out?
Time to open that Ebay store selling rare collector $10 and $100 US dollar bills for $1 trillion each. And yes, that's one trillion US dollars, I'm not crazy, I'm just a capitalist pig looking to profit off of others' misery.