Bernanke went on to assure the Senators “…we remain prepared (the Fed) to take further policy actions as needed to foster a return to full utilization of our nation's productive potential in a context of price stability.”
Translated the scene went like this [He then sobbed, “there’s nothing we can do, save yourselves”] You see there isn’t much the Fed can do, they’ve long ago pegged the interest rate at zero and the stock market bubble that created is becoming unstable. Even Goldman Sachs hardly showed a profit last quarter.
When Bernanke mentioned “… in a context of price stability” he’s talking about runaway deflation and that’s an economy killer. Wholesale prices are already starting to slip and the slope is very slippery. Nervous retailers are starting to undercut one another hoping to be the one left standing. The really big corporations on the hand are wallowing in cash, primary because they pay no taxes and are so powerful that they can extract money out of the peasants at will.
The DOW lost its early gains and finished down a hundred points after the speech and the dollar fell sharply against all major currencies. The futures market has started betting that the Fed will keep interest rates near zero until the end of next year. That means a couple more trillion of derivatives will be generated as the quadrillion dollar casino rolls along. The suckers are still coming and the mob bosses of Wall Street continue to skim their billions off the take. Don’t worry though, I’m sure Glenn Beck has a no lose betting system to sell us. Just bet your gold coins on Red to win in the fall. How could you lose the farm an that? www.prairie2.com