Yesterday's coordinated effort to rescue Europe and its banks appears to have been engineered by Ben Bernanke. Once again the Lone Ranger, the US is coming to the rescue. However, what kind of risks are we taking on? Clearly, the most powerful man in the world today is Mr. Bernanke! In the absence of responsible action by Congress and our president he is doing whatever he thinks is necessary to, from his perspective, save the world from going down the toilet. He is shuffling billions perhaps trillions buying and selling various securities apparently all over the world. Additionally he has flooded the markets with cash to keep interest rates low. Does Mr. Bernanke realize what a monster he may be creating that could blow up?
First, the signals the Fed gives provide little or no confidence. In fact inflation is raising its ugly head; oil and gold prices remain stubbornly. Everyone knows inflation is higher than the 2-3% the government reports. Ready for $4-5 gasoline next spring? If our currency keeps falling we will continue to import lots of inflation. The low interest rate policy punishes savers, especially seniors contributing to our weak economy. The Federal Reserves mandate must be limited to controlling inflation and maintaining the value of our currency. Bernanke should not be re-appointed.
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