POOR, HELPLESS BERNANKE
|By Judith A. Klinghoffer (bio)|
Ben Bernanke embarked on QE2 to devalue the dollar to help American exports, to long term interest rates to help the housing market and to increase inflation to buoy the stock market, make Americans feel richer and spend more.
Alas, the global economy refuse to cooperate. Bond vigilantes are gunning for Ireland, the Euro teeters and the dollar rises. Stocks retreat on Asian inflation, Euro debt fears. And long term interest rates are rising instead of declining.
Poor Bernanke, the American economy is tied to the global economy and the world economy refuses to march to the beat of his drum.
May I just add that it is absurd not to include food and fuel in the inflation rate. It does not feel like zero inflation to me. Not when I have to pay 90 cents for a bagel.
For more, see my HNN blog Deja Vu
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|Posted by Judith A. Klinghoffer on November 16th, 2010
Permanent link: POOR, HELPLESS BERNANKE