Commodity prices are a monetary phenomenon. The price
of oil keeps going up. Yet Ben Bernanke still won't do anything
serious to strengthen the dollar. Again and again I and many others
have been
warning for month after month that "Stagflation could make its
ugly face obvious as early as this summer." Now it is just about
here. And it's the fault of the Fed and the Treasury, along with a
political class that keeps approving huge spending while failing to
ensure that current low tax rates will remain low. And now things
are getting really awful. Since Ben Bernanke and the Fed refused
last week to back up Bernanke's "strong dollar" talk, from a few
weeks earlier, with any actual discernible action, the stock market
has tanked even further, horrendously so, while oil and gold have
jumped even more. Bernanke is incompetent. Bush can't fire him, but
he should ask for the Fed Chief's resignation, in favor of somebody
who will actually protect the dollar.
topics:
Ben Bernanke, Oil
