Thursday, January 27, 2011

More from What we worry Bernake and why inflation is already here

Here is a feed from Ann Coulter related to head economic guesser dude, Ben, "what me worry" Bernake. I agree with Coulter in the fact the Federal Reserve and the federal government are basically lying to all of us regarding denying we are not in a period of inflation. 

Considering the fact the Federal Reserve announced they are going to flood 600 billion more into the economy coupled with the SOTU address by Obama focusing on "investments" is not going to be inflationary?  Get real.

When the federal government keeps spending money like it is, we are obviously in a period of further erosion of our nation as we continue to watch the yahoo politicians spend our money and incur debt like a drunker sailor just returning to port. 


"Ben Bernanke's Inflation Deception --and What to Do About It

Dear Fellow Conservative, Prices are soaring. From milk to gasoline, the things you buy every day are skyrocketing. Yet when '60 Minutes' asked Federal Reserve Chairman Ben Bernanke what "degree of confidence" he had in his ability to prevent inflation from getting out of control, he responded with a jaw-dropping "100 percent"!

Even Diane Sawyer's expression changed, and that hasn't happened since the late 70's. Even Andy Rooney raised an eyebrow, and that's like lifting a Chevy. And Morley Safer nearly fell off his Rascal.

Got that? Not a merely boastful 90 percent. This was a third world election-style "100 percent."
Quick -- someone add Bernanke's statement to the Wikipedia list of "Famous Last Words" with a cross reference to "Colossal Hubris."

Bernanke exemplifies what the great free-market economist Friedrich Hayek called "The Fatal Conceit" (and I call, "the Carter years") -- the undying belief by central government planners that they can "manage" entire national economies, when experience proves they can't even handle timely delivery of the mail.

Maybe I'd share some of Bernanke's confidence in himself if he'd gotten a few things right in recent years.
But this is the guy who said:

"We've never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize" (July 1, 2005).

"[T]he impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained" (March 28, 2007). And:

[Freddie Mac and Fannie Mae] "will make it through the storm" [and are] "adequately capitalized" (July 16, 2008).

How confident was Bernanke about those predictions? This guy has been wrong more often than the weatherman.

Perhaps I'm being too hard on Gentle Ben. As Yogi Berra once said, "Prediction is hard, especially about the future." But Bernanke can't even get it right about the present.

Bernanke says current inflation is below 2 percent. Admittedly, Bernanke's not alone in touting this fiction; it's more or less official government policy, ever since the Bureau of Labor Statistics began excluding food and energy costs from its official "core inflation" measure. Yes, you read that right: The government's inflation index excludes food and energy. (This is the same model Al Gore uses to prove his diet is working.) So the price of your labor is holding steady. It's the price of the things you need to buy that's skyrocketing.

Here, then, are some inflation figures concurrent with his "60 Minutes" appearance that Bernanke could pretend were irrelevant to his "official" inflation measure:

Oil prices are up 21% in the last year
Corn is up 49% in the last year
Wheat is up 41% in the last year
Beef is up 28% in the last year
Sugar is up 32% in the last year
Coffee is up 40% in the last year

In other words, inflation is already raging. Pretending it isn't allows Bernanke to continue pumping free money into the Democrats' main constituency: Wall Street.

Fortunately, even if the average American isn't aware of these sleights of hand, economists are. And one, in particular, is uniquely capable of helping you protect and grow the value of your savings even as Ben Bernanke turns the U.S. dollar into the German Reichsmark circa 1923 (when Germans had to carry cash in a wheelbarrow instead of a wallet).

That one economist's name is Mark Skousen, a PhD in economics and monetary policy -- and, for my money, the smartest investment adviser working today. Example: While Bernanke was giving the "all clear" to the U.S. economy back in 2006, Dr. Skousen was warning subscribers to his investment newsletter, Forecasts & Strategies, that "we clearly are headed for fiscal disaster" (and then showed them how to protect themselves).

Going further back, Skousen called every major market move for the past 30 years, including the Tech Bust of 2000, the Tech Boom of the mid-'90s, the Crash of '87, and (my favorite) the Reaganomics-fueled recovery of the early and middle '80s.

More recently, Skousen accurately read the economic signs of the times ("insane government policies") to steer his subscribers into inflation-sensitive commodities like gold, silver, and oil, along with other profitable investments.

As a result, according to MarketWatch columnist Peter Brimelow, "[Skousen's] recent results are probably the best of his career. Over the past 12 months, Forecasts & Strategies is up 25.77% by Hulbert Financial Digest count compared to 18.31% for the dividend-reinvested Wilshire 5000 Total Stock Market Index."

Bottom line: Government technocrats like Ben Bernanke are as capable of "managing" the U.S. economy as I am of managing the New York Yankees. . . .

Sincerely, Ann Coulter"

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