Inflation fears drive investors to the gold market and that greatly displeases Bernanke’s Wall Street cronies. Posted by James Randolph on March 17, 2011
The same tune with new lyrics won’t fool people out of gold investment.
March 17, 2011 – Inflation fears drive investors to the gold market and that greatly displeases Bernanke’s Wall Street cronies. So to keep the great delusion alive, he has turned to a game of semantics.
Americans have grown wise to the core inflation gimmick that Bernanke has relied upon all along, so he has changed his language to make people "believe he’s now paying more attention to headline rather than core," says vice chairman of Macroeconomic Advisers and former Fed governor Laurence Meyer in the Wall Street Journal. The authors of the article, Sudeep Reddy and Michael S. Derby, attribute his motivation “in part to avert criticism that central bankers are out of touch with consumers.”
The Rasmussen Report supports their conviction, finding that nearly two-thirds of Americans are not confident in the Federal Reserve, and nearly one-quarter are not at all confident. Furthermore, two-thirds of Americans believe that we are still in a recession and 82% are concerned over inflation.
So when Bernanke testified before Congress a short while ago not once did he use the term “core inflation.” Instead he spoke of “low and stable inflation in the medium term," in what Meyer termed "a clever, politically motivated choice of words … [that] gives exactly the same message."
It will take a lot more than different words, however, to change American sentiment. That will take no less than a significant improvement in the conditions under which the average citizen is forced to live. We are all tired of the Fed’s pep rallies cheering on what is a decidedly losing team. When Federal Reserve Bank of New York President William Dudley told a Queens audience that underlying inflation was low despite rising food and energy prices, he was asked "When was the last time, sir, you went grocery shopping?"
It is time to give up on the Fed and deal with inflation in the best way available to us: invest in certified gold.
Senior Staff Writer – Certified Gold Exchange