In a departure from normal practice that no official except the Treasury secretary comment on the dollar, Bernanke said the Fed is committed to a strong dollar. "We are attentive to the implications of changes in the value of the dollar," he said, adding that Fed policy would "help ensure that the dollar is strong and a source of global financial stabilityI don't know about anyone else, but I find this change in policy by Bernanke to be quite startling. Either Bernanke is an outright liar - which we know is the case - or he has decided that the Federal Reserve will annex control of the money supply now. We can observe from the price behavior of both the stock market and gold that Bernanke is inflating the money supply and devaluing the dollar. Clearly he is NOT concerned about the relative "strength" of the U.S. dollar.
Monday, November 16, 2009
Historically, when questioned by Congress about the dollar, Bernanke has stated under oath that the Federal Reserve is does not comment or make policy decisions regarding the dollar, instead deferring all money supply and dollar policy decisions to the Treasury Department. Today Banana Ben had this to say (here's the article link LINK):
Posted by Dave in Denver at 11:10 AM