Dr Bernanke Message: what a wonder, de ja vu, but I trust God.
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Just a quick word for all those here talking about deflation. A single asset class going down in price is not deflation. Stocks going down is not deflation. Housing prices going down is not deflation. A dearth of credit creation is not deflation. Deflation is a general reduction in the cost of goods, or if you want the hard-line Austrian school definition, it is a reduction in the money supply. Whichever way you prefer to define it, deflation is not happening. The world's central bungholes are pumping money like never before. Commodity prices continue to rise in response to their follies, meaning the cost of our end goods will ultimately rise, as well.
Furthermore, even if deflation were a possibility, the Fed would not tolerate it, no matter how much they talk about inflation being a problem. Deflation hurts people who are debtors because it correlates with a rising currency. Who wants to borrow 10 bucks today and have to pay it back with a more valuable 10 bucks later? You see? Our country is the largest debtor nation this side of alpha centauri. There is no way we're going to let our currency gain any long-term traction.
Trust me. I am your central banker.
AI
