Why Bernanke’s Money Printing Promises Spell Disaster
By Bill Bonner
Meanwhile, stocks, commodities, practically everything is slobbering…breathing hard…hot and bothered. Probably capers too. Why? Because everything points to more easy money from the Fed. And everyone knows what easy money does. It causes prices to bubble up. Asset prices, that is. It doesn’t do much for the economy – not when the economy is de-leveraging. But it can really cause havoc in the financial markets.
The Dow went up another 75 points yesterday. Oil is up to $83. Gold is headed to $1,400 – and after that, the moon.
Whee! What fun it is to think about all that new, Fed-created money bubbling into the markets…pushing up everything in its path…
Ben Bernanke gave the Japanese some advice about 10 years ago. He said that if their economy was stuck in the doldrums it was their own damned fault. He didn’t put it that way. He said their problems were largely “self-induced.” Which is a polite way of saying it was their owned damned fault.