Tag: bernanke

German Finance Minister: Federal Reserve Losing Credibility

German Finance Minister Wolfgang Schäuble said in an interview with Spiegel Online that Ben Bernanke and the Federal Reserve are losing credibility in relationship to fiscal policy. Schäuble also significantly pointed out something most media don’t understand or report on, and that is the Federal Reserve is manipulating their currency as much as China allegedly is when it debases the U.S. dollar

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Fed in a Quandary About How to Explain QE2

Fed in a Quandary About How to Explain QE2

Filed under: Market Matters , Politics , Federal Reserve The U.S. Federal Reserve is in a quandary about how to explain its anticipated quantitative easing stimulus, dubbed QE2. Officials worry that an added stimulus will create unwanted inflation. Fed officials Charles Evans and William Dudley have spoken in favor of the new stimulus. Dudley told the Financial Times that asset purchases and communication are “two potentially complimentary avenues.” Continue reading Fed in a Quandary About How to Explain QE2 Fed in a Quandary About How to Explain QE2 originally appeared on BloggingStocks on Fri, 08 Oct 2010 13:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Fed Officials Discuss Whether We Should Have More Inflation

Fed Officials Discuss Whether We Should Have More Inflation

Filed under: Consumer Experience , Market Matters , Economic Data , Commodities , Oil , Federal Reserve , Currency There is talk among some members of the Federal Reserve about whether we should have more inflation to spur the economy. This is a hot button. If you push it, you can start a fire that cannot be put out. That was the case in the 1970s when inflation ran rampant and interest rates shot up to 18%. Fed chairman Paul Volcker managed to put that fire out, but in the meantime the economy was thrown into a severe recession. Fast forward to the present. The Fed has an unofficial inflation target of 1.5% to 2%. Fed members Dudley and Evans are of the mind to let inflation float above these levels for a time, and then bring it back down. They expressed their views in the Wall Street Journal . Continue reading Fed Officials Discuss Whether We Should Have More Inflation Fed Officials Discuss Whether We Should Have More Inflation originally appeared on BloggingStocks on Thu, 07 Oct 2010 14:10:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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FED Adds QS To QE: Here’s The Transcript of Bernanke’s Testimony

Filed in Gold Investing, Gold Prices, silver by on September 30, 2010 0 Comments

Appearing before the US Senate Banking Committee Thursday, FED chairman Ben Bernake began his testimony on the recently approved US legal overhaul – the regulation of the financial system. In prepared speech, Bernanke praised the Dodd- Frank Act for a…

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Citigroup (NYSE:C) Right on $1,300 Gold?

Citigroup (NYSE:C) said last week if we hear the phrase “quantitative easing” used by the Federal Reserve this week, we’ll probably see gold prices soar to record levels above $1,300.Investors are strongly tuned into gold now, especially in light of the ongoing disaster with the European sovereign debt crisis and weak U.S. economy.Ben Bernanke has already stated he’s ready to intervene and resume

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Higher Meat Prices Are Fueling Food Inflation

Higher Meat Prices Are Fueling Food Inflation

Filed under: Consumer Experience , Economic Data , Commodities , Federal Reserve What is happening in the cattle market is directly affecting food prices at your local supermarket. Here are some upsetting numbers. Global meat prices have hit a 20-year high. The UN Food & Agriculture Organization’s index was the highest in August since 1990. Live cattle futures hit $1 per pound, the highest in 22 months. Australian lamb prices have risen above $5.50 a kilo, the highest since 1973-74. And this is the big whopper: Pork bellies, which are used for bacon, are at a record $1.50 per pound. The higher cost of feed is driving up prices. Continue reading Higher Meat Prices Are Fueling Food Inflation Higher Meat Prices Are Fueling Food Inflation originally appeared on BloggingStocks on Thu, 02 Sep 2010 12:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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“Monetary Shock and Awe”: The Fed prepared to launch most Radical Intervention in History

Mike Whitney Black Listed News Sunday, August 29, 2010 The equities markets are in disarray while the bond markets continue to surge. The avalanche of bad news has started to take its toll on investor sentiment. Barry Ritholtz’s “The Big Picture” reports that the bears have taken the high-ground and bullishness has dropped to its lowest level since March ‘09 when the market did a quick about-face and began a year-long rally. Could it happen again? No one knows, but the mood has definitely darkened along with the data. There’s no talk of green shoots any more, and even the deficit hawks have gone into hibernation. It feels like the calm before the storm, which is why all eyes were on Jackson Hole this morning where Fed chairman Ben Bernanke delivered his verdict on the state of the economy on Friday. Wall Street was hoping the Fed would “go big” and promise another hefty dose of quantitative easing to push down long-term interest rates and jolt consumers out of their lethargy. But Bernanke provided few details choosing instead this vague commitment: “The Committee is prepared to provide additional monetary accommodation through unconventional measures if it proves necessary, especially if the outlook were to deteriorate significantly.” Check. There’s no doubt that Helicopter Ben would be in mid-flight right now tossing bundles of $100 bills into the jet-stream like confetti if he had the option. But Bernanke is fighting a rearguard action from inside the FOMC where a fractious group of rebels want to wait and see if the recent downturn is just a blip on the radar or something more serious, another tumble into recessionary hell. This week, the markets were blindsided by two days of dismal housing news, grim durable goods orders, a slowdown in manufacturing, and modest gains in employment. 4 years later, and housing is still mired in a depression. When does it end? Households and consumers are buried under a mountain of debt; personal bankruptcies, delinquencies, defaults and foreclosures continue to mount while politicians threaten to tighten the purse-strings putting more pressure on families who can barley put food on the table let alone pay the mortgage. Just months ago, 57 out of 57 economists surveyed predicted that the economy would avoid a double dip recession. Now they’re not so sure. Stock market gains have been wiped out and the S&P 500 has dropped 14 percent …

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The All But Forgotten Self-Governing Economy

Filed in ben bernanke, economy, Gold, Gold Prices by on August 28, 2010 0 Comments

GDP growth revised downward to an “anemic” 1.6%… Jobless claims rise more than forecast… Home sales fall off a cliff…worse than economists expected… Faced with a slew of deteriorating economic data points, Fed Chairman Ben Bernanke delivered a speech on Friday designed to assure investors that he has the fate of the nation’s economy under The All But Forgotten Self-Governing Economy originally appeared in the Daily Reckoning . The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

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SEC, Asleep During the Financial Meltdown, Vows to Get Tough

SEC, Asleep During the Financial Meltdown, Vows to Get Tough

Filed under: Insiders , Law , Employees The Securities and Exchange Commission pretty much fell asleep for the past two years. Now, there’s talk that the agency plans to get tough on violators whose greed and recklessness took this country to its knees. The Federal Reserve had to pledge or spend $12.8 trillion to bail them out. The $12.8 trillion is gone and we have a country with 17 million unemployed and underemployed. Fed Chairman Ben Bernanke could have done much better just taking that $12.8 trillion and help those in need. All he had to do was use one good bank for Americans to switch their money into, and let the greedy ones take a hit. With $12.8 trillion Bernanke could have put this country back on its feet again. Continue reading SEC, Asleep During the Financial Meltdown, Vows to Get Tough SEC, Asleep During the Financial Meltdown, Vows to Get Tough originally appeared on BloggingStocks on Fri, 27 Aug 2010 11:00:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Currency Strategist Is Bearish on the U.S. Dollar

Currency Strategist Is Bearish on the U.S. Dollar

Filed under: Analyst Reports , Forecasts , Currency Thanos Papasavvas, head of currency management at Investec Asset Management is bearish on the U.S. dollar, CNBC reports . He is speculating that the Federal Reserve will change its language to indicate downside risks to the U.S. economy. He points up the contrast between the eurozone and U.S. economies. European leaders have taken measures to cut their deficits and spending. The U.S., on the other hand, is still spending to stimulate our economy. Papasavvas told CNBC that the “Dollar weakness will be the story of the next few months.” Continue reading Currency Strategist Is Bearish on the U.S. Dollar Currency Strategist Is Bearish on the U.S. Dollar originally appeared on BloggingStocks on Thu, 05 Aug 2010 11:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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ECB President, Trichet, Says Cut Public Spending and Raise Taxes

ECB President, Trichet, Says Cut Public Spending and Raise Taxes

Filed under: International Markets , Politics , Federal Reserve , Recession , Financial Crisis Ben Bernanke, chairman of the U.S. Federal Reserve, said on Thursday: “In the short term, I would believe that we should maintain a reasonable degree of fiscal support, stimulus for the economy.” That was yesterday. Today, Friday, Jean Claude Trichet, president of the European Central Bank , in an editorial for the Financial Times, called for public spending cuts and tax increases immediately across the industrialized world. Prolonging the stimulus would have “very limited” effect on growth, he wrote. Trichet criticized the oversimplified message of fiscal stimulus — “stimulate, activate, spend” — given to all industrialized economies. In Europe, both manufacturing and services output in the eurozone grew faster than expected. The European Commission also said that consumer confidence was at its highest level in July for more than two years. When it comes to economic policy, it’s difficult to plot the perfect path. Bernanke is an avid student of the 1930s depression and vows not to repeat the mistakes of that era. Trichet, on the other hand, is of the conservative European school of economics. He would prefer to err on the side of fiscal conservatism. Bernake would continue to use public money, if needed. He has already used $11.2 trillion of taxpayer money to prop up U.S. bank. The shift of this vast amount of money from taxpayers to the private banking sector is unprecedented in world history. Whether he should continue this policy is open to debate. Do you believe that Trichet is right to cut spending and raise taxes? ECB President, Trichet, Says Cut Public Spending and Raise Taxes originally appeared on BloggingStocks on Fri, 23 Jul 2010 10:30:00 EST. Please see our terms for use of feeds . Read | Read | Permalink | Email this | Comments

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Reform Bill Would Make Federal Reserve Accountable to Congress

Filed in euro, Federal Reserve, New Gold, South African Gold by on June 1, 2010 0 Comments
Reform Bill Would Make Federal Reserve Accountable to Congress

Filed under: Market Matters , Politics , Federal Reserve , Financial Crisis During the financial meltdown, Ben Bernanke, chairman of the Federal Reserve, boldly pledged $11.2 trillion to bail out a handful of bankers. The Fed then went on a spending spree and bought U.S. treasuries and all kinds of toxic mortgage backed securities. He now has a $2.3 trillion dollar “book” of securities that he must unload. His latest spending spree was to open up credit lines with European banks to help stem the eurozone crisis. Continue reading Reform Bill Would Make Federal Reserve Accountable to Congress Reform Bill Would Make Federal Reserve Accountable to Congress originally appeared on BloggingStocks on Tue, 01 Jun 2010 13:20:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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