Don't let the title fool you (we added the parenthetical part)... this is not just a "goldbug" article, but is one of the most insightful explanations of what the Fed is doing that I've seen all year. Maybe the most.

Anyone who reads the written works of our Fed Chairman knows that Bernanke’s long term plan involves devaluing the dollar against gold. This is the exact opposite of most prior Fed Chairmen. He has overtly stated his intentions toward gold, many times, in various articles, speeches and treatises written before he became Fed Chairman. He often extols the virtues of former President Franklin Roosevelt’s gold revaluation/dollar devaluation, back in 1934, and credits it with saving the nation from the Great Depression. According to Bernanke, devaluation of the dollar against gold was so effective in stimulating economic activity that the stock market rose sharply in 1934, immediately thereafter. That is something that the Fed wants to see happen again.


bdc63 at 17:12 2008-12-04 said:
Good article. Permalink

add a comment | go to forum thread