A good friend of mine sent me and article from Politico with the headline “Bernanke’s trillion-dollar decision.” I read the article. It talks about how Fed Chief Ben Bernanke has to decide whether or not he will continue to support the banking system with 1 trillion dollars in funding that is “propping the system up.” The writer laments the fact that decision will be Bernanke’s alone and Obama “will have almost nothing to do with it.”
I wrote my buddy back and told him, ” So what do you think they are going to do? Let it all collapse? Not a chance. Big inflation in gold, silver and energy are coming.” Let me explain further. Back in August when President Obama renominated Ben Bernanke to his post at the Federal Reserve, don’t you think that Obama asked if he would continue to support the economy? Which means print money. The result of all the money printing that has occurred, and all that will come, will be inflation. Nobel Peace Prize winner Milton Friedman said, “inflation is always and everywhere a monetary phenomenon.”
If Bernanke would have hesitated or given the slightest implication he would let the economy fail, Larry Summers would be Fed Chief right now. The fix is in and Bernanke will continue quantitative easing (printing money) to buy toxic debt or continue buying our own treasuries to suppress interest rates. This will be done overtly or covertly, but it will be done. There are the 2010 midterm elections and the Democrats will want to keep control of both houses. Then there is the 2112 Presidential election and Barack Obama will want two terms just like everybody else who has held that office. Expect the money printing party to continue, no matter what! (Here’s the story from Politico.)
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Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.