The dollar is crashing. Commodities are at roughly an eight-month high. Gold is near an all-time high and silver is at a 30-year high. Corn, soybeans, wheat and cotton are all soaring. So what is the topic Fed Chairman Bernanke will speak on Friday in Boston? "Monetary Policy Objectives and Tools in a Low-Inflation Environment."
The man is clearly out of touch and we will be able to add to all those absurd quites where he first said there was no housing bubble and then said the crisis was limited to the housing market, but given that he thinks we are in a "low-inflation environment", it is very likely he will open the monetary spigots after the mid-term elections. In the speech, he may provide a clue to how aggressive he will be.
as long as the wages dont go up, how does positive loop feedback for inflation happen?
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