Pres. Obama’s reappointing Ben Bernanke to head up the Federal Reserve should put you at considerable ease — he’s demonstrated such enormous competence and understanding of what’s actually happening in the economy, with such keen foresight, that he is clearly most qualified to bring us back to prosperity. Observe the oracle at work:
Grab your ankles, America, Benny’s back! If you thought the crash last Fall was bad, wait until you see the disaster created by this man’s response. The politicians don’t have the balls to dramatically raise taxes at a time when the public is already at a kindling point (not that it would help). That only leaves two ways to finance their massive debt: borrowing the money or printing it. Well, folks, it looks like they’re going to have to opt for the latter — Bernanke’s Fed is as I type this monetizing our debt even while the Treasury is no longer able to fool foreigners into throwing their money into the U.S. Government Vacuum.
Debt monetization has only been tried a few times in history. It has always failed. Buy gold. Buy ammo. Get out of equities now — you don’t actually believe this stock market rally corresponds to a sudden massive turnaround in the economy, do you? Get out of Federal Reserve Paper while you still can.