Fed Chairman Ben Bernanke’s interview on 60 Minutes was good for gold investment. Posted by James Randolph on December 07, 2010
The credibility gap.
December 07, 2010 – Fed Chairman Ben Bernanke’s interview on 60 Minutes was good for gold investment, but for once wouldn’t it be nice if the government stopped trying to pull the wool over our eyes? That interview came across like a father trying to convince his children that all is well sitting atop their house as a flood sweeps it away. It is high time that the government realizes that we are not infants and we much prefer straight dealing than being handed another pair of rose colored glasses. But that of course, would likely lead to us taking back our rightful power.
Perhaps that is bit more ranting than the situation calls for, but Bernanke’s out-of-hand dismissal of the concerns of foreign leaders and domestic economists, his glossing over of serious problems, and his portrayal of the Fed as some sort of superhero adds up to one big snow job. Like it or not, the ripple effect of the Fed’s actions throughout the world must be considered. No country exists in a vacuum any more, and no one man – or agency – has the power to bring stability to global economics.
The interview seems to have been designed to calm the naïve masses, but surely they knew it would be analyzed throughout the world. Portraying the potential for another recession as a remote possibility contingent on unemployment remaining high for a protracted period is not encouraging when by all indications that will likely be the case. And claims that the Fed has the power to turn the economy on a dime, instantaneously “raising rates, tightening monetary policy, slowing the economy, reducing inflation, at the appropriate time," cannot help but undermine whatever credibility the agency may have left.
While the intent of this charade is unclear, the message is not: Head for the cover of certified gold investments.
Senior Staff Writer – Certified Gold Exchange