February 28, 2013 Santiago, Chile
I really hate to beat a dead horse, but I wouldn’t be doing my job for you if I didn’t point out some of the most intellectually dishonest, self-aggrandizing Bernanke-speak to come out of the Fed Chairman’s testimony yesterday:
1. “[The Federal Reserve has] 25 years of success in keeping inflation low and stable, not just in the United States but around the world.”
Translation: “I have not set foot in a grocery store or gas station in decades.”
2. “Our estimates are that we’ve helped create many private sector jobs, government jobs to support the economy quite significantly.”
Translation: “In my sole discretion where I get to completely ignore all data points I don’t like, I am doing a heck of a job.”
3. “I am very much in favor of getting our fiscal house in order but I think it’s a long run issue and I would be supportive of a less front-loaded set of measures.”
Translation: “Feel free to continue kicking the can down the road.”
4. “The best way to get interest rates up is to not raise them too quickly.”
Translation: “No matter what, I’m going to continue printing money and justify it with puzzling drivel.”
5. “I don’t see any sign that that’s happening (the U.S. dollar losing status as world’s reserve currency).”
Translation: “I pay absolutely no attention to what’s going on in Russia, China, the Middle East, or the gold market.”
6. “[S]avers have many hats. They may own fixed income instruments, like bonds, but they also may own stocks or a house or a business. . . And those values have gone up, the stock market has roughly doubled, as you know, in the past few years.”
Translation: “In order to not get eaten alive by inflation, I will force responsible savers to assume unnecessary risks in an overinflated stock market that has just now, finally, reached its nominal highs from 2007 thanks to my money printing.”
I know this goes without saying, but entrusting this man with your life savings is a dangerous course of action. I strongly urge you to consider diversifying into precious metals, productive farmland, or even a digital currency like Bitcoin.
After all, you know the old saying– it’s time to be very concerned when the politicians and bureaucrats tell you to not be concerned.