Today's historic news conference for the fed demonstrated why there had never been one before.
So much double-speak and talking in circles. The couple of times where there seemed to actually be answer a question without a vague generality it was undone it in the next answer.
Bernanke was full of contradictions.
He said that we need a strong dollar, but he is doing all he can to keep it weak.
He said we need price stability, yet his monetary policy is fueling inflation.
He said we need maximum employment - at least he acknowledged that this idea wasn't going so well.
He said we need to keep inflation low, but his policies have driven us gas prices like never before.
He said that gasoline prices are creating hardship on families, but attributes the price increase to supply and demand. We can fix the supply. It's called drilling.
He said that gas prices accounts for all the increase in inflation, but shrugged his shoulders and said that there is not much the fed can do. Can't raise interest rates? Can't stop printing money? Can't stop buying treasuries? Can't pull down the money supply?
He said that he can't create more oil (no but we can with drilling starting tomorrow and refineries starting next week) to try to keep higher gas prices from passing into other areas and increasing prices in those other areas.
Does he not understand that higher fuel prices increase food costs and everything else that is manufactured? Then it continues to increase as products are moved about in the marketplace?
It's no wonder we are in the mess we are in with this lack of leadership.
For more information about my consulting, teaching, and coaching services visit my website at stevehoffacker.com. I also maintain a blog (Sales Quips) on the real estate network Active Rain, and you can begin participating in this great forum by visiting here. I also write and maintain blogs for Gold Coast SMC and Florida SMC. © 2011, Steve Hoffacker. All Rights Reserved.
So much double-speak and talking in circles. The couple of times where there seemed to actually be answer a question without a vague generality it was undone it in the next answer.
Bernanke was full of contradictions.
He said that we need a strong dollar, but he is doing all he can to keep it weak.
He said we need price stability, yet his monetary policy is fueling inflation.
He said we need maximum employment - at least he acknowledged that this idea wasn't going so well.
He said we need to keep inflation low, but his policies have driven us gas prices like never before.
He said that gasoline prices are creating hardship on families, but attributes the price increase to supply and demand. We can fix the supply. It's called drilling.
He said that gas prices accounts for all the increase in inflation, but shrugged his shoulders and said that there is not much the fed can do. Can't raise interest rates? Can't stop printing money? Can't stop buying treasuries? Can't pull down the money supply?
He said that he can't create more oil (no but we can with drilling starting tomorrow and refineries starting next week) to try to keep higher gas prices from passing into other areas and increasing prices in those other areas.
Does he not understand that higher fuel prices increase food costs and everything else that is manufactured? Then it continues to increase as products are moved about in the marketplace?
It's no wonder we are in the mess we are in with this lack of leadership.
For more information about my consulting, teaching, and coaching services visit my website at stevehoffacker.com. I also maintain a blog (Sales Quips) on the real estate network Active Rain, and you can begin participating in this great forum by visiting here. I also write and maintain blogs for Gold Coast SMC and Florida SMC. © 2011, Steve Hoffacker. All Rights Reserved.
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