It looks as though the stimulus has been a resounding success and that’s all the more reason to invest in certified gold. Posted by James Randolph on February 09, 2011
February 09, 2011 – It looks as though the stimulus has been a resounding success and that’s all the more reason to invest in certified gold. That might need a little further explanation.
Last year “total compensation and benefits at publicly traded Wall Street banks and securities firms hit a record of $135 billion . . . up 5.7%” over the previous year says the Wall Street Journal. Compared to the Fed’s claimed 0% inflation, that sounds pretty successful to me, and Bernanke makes no bones that that was his intention. And with all of that loot who would be bothered by the growing food and energy bubbles that the Fed’s policies are pumping up?
Of course those of us in the real world whose incomes are frozen (if we even have incomes) have a different slant on things. To us it doesn’t matter who’s to blame for skyrocketing food and energy prices – we have to pay for it and between the two our cost of living is rising at an alarming rate. But for the record, when Bernanke points the finger at emerging economies three more are pointing straight back at him.
According to monthly data from Food and Agriculture Organization of the United Nations the price of essential foods surged up 87% from the moment Bernanke announced the stimulus plan. Nothing even remotely that dramatic happened in the emerging economies during that time so claiming that dumping $1.5 trillion into the global market has nothing to do with the food bubble is ridiculous. But that means nothing to Bernanke, who time and again has told the rest of the world that the Fed’s job is to deal only with problems here regardless of the global repercussions.
As Wall Street hums along piling up stacks of devalued dollars it is comforting to know that relative to certified gold investments there has been no inflation in the basic necessities of food and energy.
Senior Staff Writer – Certified Gold Exchange