Bernanke Warns of Tanking the Economy

Bernanke- The Economy is Weak

“I don’t think the Fed can get interest rates up very much, because the economy is weak, inflation rates are low, if we were to tighten policy, the economy would tank.” Ben Bernanke testifying at the House Financial Services Committee last week.

With those words Ben Bernanke confirmed what we have been saying for months on the Smaulgld blog-the Fed can not exit from its quantitative easing (QE) program because to do so would cause the economy to collapse (we never used the word “tank”).

Last week Ben admitted it. So all this talk of taper, as we have been saying, is just talk. For awhile he had us going, or at least he had the recovery addicts going. Rising interest rates were ok, they said, as they were a sign of an improving/recovering economy. Wrong. Interest rates were rising not because the economy was improving but because the Fed was threatening to stop QE.

Last week Bernanke removed that threat.

Looks like Ben Bernanke is going to follow the Maestro’s easy money policies with an epic encore of accommodative monetary policy.

You can hear the report from Bloomberg here

Gold and silver should respond nicely to this QE4EVA admission.

Get Free Updates From

Subscribe to and get the free In Case You Missed Itweekly email as well as updates and analysis on gold, silver, real estate and the economy.

Also get the free report “Twelve Key Differences Between Gold and Silver” when you subscribe.

Buy Gold and Silver

Please visit the Smaulgld Store for a larger selection of recommended books, music, movies and other items.

Or you can support by making all your Amazon purchases through the search widget below and by ordering your gold and silver by clicking on the JM bullion ads on the site:

Buy Gold and Silver

DISCLOSURE: Smaulgld provides the content on this site free of charge. If you purchase items though the links on this site, Smaulgld LLC. will be paid a commission. The prices charged are the same as they would be if you were to visit the sites directly. Please do your own research regarding the suitability of making purchases from the merchants featured on this site.

The content provided here is for informational purposes only. Making investment decisions based on information published by Smaulgld (SG), or any Internet site, is not a good idea. Accordingly, users agree to hold SG, its owner and affiliates, harmless for all information presented on the site. SG presents no warranties. SG is not responsible for any loss of data, financial loss, interruption in services, claims of libel, damages or loss from the use or inability to access SG, any linked content, or the reliance on any information on the site.

The information contained herein does not constitute investment advice and may be subject to correction, completion and amendment without notice. SG assumes no duty to make any such corrections or updates. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. SG disclaims any and all liability relating to any investor reliance on the accuracy of the information contained herein or relating to any omissions or errors and as such disclaims any and all losses that may result.

Post Navigation