Friday, April 29, 2011

Bernanke speaking did not help

Euro Pacific Capital CEO, long-time Fed critic, and "financial doomsayer" Peter Schiff thinks that the Fed is doing the wrong thing.
Schiff went right for the jugular. Noting that a Bloomberg article called Wednesday's Bernanke press conference a "success," Schiff said that, "As the Fed chairman spoke, the dollar was getting crushed, gold surged to a new high. How do you call that a success? That's like saying the Titanic had a successful crossing just because some passengers happened to make it to New York."
"[Bernanke is] lying," Schiff continued. "The more the Fed insists that inflation is transitory, the more its reputation becomes transitory."
-Yahoo! Finance

The Bernank claimed that he wants a strong dollar, but clearly, he is acting to destroy the dollar. He's either doing it willingly, or he is the biggest idiot to ever put on a monkey suit.
"I will say that in the race for the worst Fed Chairman ever, Ben Bernanke is giving Alan Greenspan a run for his money. He just might take the crown."
-Peter Schiff

That pyramid ain't made of paper...

Precious metals, which have been skyrocketing for quite some time now, reacted even more bullishly to the Bernank's press conference. It actually takes quite a bit of skill to reach record high after record high after record high for so long a period.
The gold price has made new record highs at over $1,530 per ounce, while silver has regained upward momentum following its descent from close to $50 per ounce on Monday. Although platinum and palladium are below their year highs set in February, both metals have been boosted by Bernanke’s comments. Platinum reached over $1,827 per ounce in late trading yesterday.
As a matter of fact, yesterday, Weiss Ratings gave the US a "C" rating for creditworthiness, putting the soon-to-be-former largest economy in the world below Mexico, it's neighbor the south (yes, the one whose citizens risk robbery, rape, and murder to sneak into the US...or at least they used to). That US rating actually ranks it 33rd in the world.
A C from Weiss is roughly equivalent to a BBB rating from the big rating agencies like Moody’s Investors Service, Standard & Poor’s and Fitch. That’s about two notches above non-investment grade, or junk, status.