Friday, August 22, 2008

Back to "Wishing Away" Inflation

Ah yes, another Bernanke speech. More evidence that he won't raise rates (he basically said so), and more talk of inflation moderating. So this is the pattern. They pursue actions that weakens the dollar and don't limit inflation. And to protect against, inflation, they say, inflation will probably moderate. So "actions" to weaken the dollar and protection against downside in the market, and "talk" to limit inflation. I see this a "wishing" inflation will go away while they try to protect fannie, freddie, and other various banks.

These actions all carry long-term effects. Even if these institutions survive, look what we've done to our country's balance sheet.

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