An Opinion: i do NOT see Bernanke raising interest rates, period.
Bernanke is what i call an academic FANATIC committed to his own theories.
He is in the position that is the position of the most powerful man in the world, a position he desired and campaigned for, and with an massive ego to prove his theories to be right.
He is esentially shallow. Why shallow? Because in one questioning before Congress he said, and though probably not word for word, it is true to what he meant: " What I am doing has NEVER been done before it is my belief this the answer but i could be wrong and it turns into a disaster" And with that,he gave a SMILE, and a slight giggle.
With that he signalled out a the mindset of an academic LOONEY, he doesn't care if it turns into a disaster, he just wants the EXCITEMENT that high rolling gamblers get--he likes danger, and he has no internal worry it might collapse the world in the longrun as he has locked within him his fanatic doctrinal obsessive belief in the power of just PRINTING paper, and his utterly fanatic belief in Fiat money.
That he got appointed to be the Fed Chief is just proof that those behind him are as crazy as he is.
John Paulson thinks Bernanke will raise rates, Paulson is an extremely smart man, but he is NOT a psychologist---he is thinking Bernanke will raise rates as he ,Bernanke, will be behaving logically---i feel this is a mistake.
Marc Faber and The Spear Report both feel that to think Bernanke will start pushing up interest rates is NOT to understand Bernanke.
Plus there is another factor, the U.S., due to its BEING PRISONERS to the Wealth Effect Monster it created , can NOT raise rates and then NOT see the market start selling off , and hard.
The U.S. is in an economic TRAP that they are now locked in(thanks to that CRIMINAL Greenspan), the U.S. government can not have equities start to collapse nor interest rates on rising upwards for mortgages start and LT treasuries.
This would destroy their whole BS ILLUSION of we are in RECOVERY.
In Bernanke they have exactly "The Nutcase" they need
The ONLY thing that can alter this insanity is for the longterm Tresuries interest rates to start RISING in spite of Bernanke's virtual zero interest rates remaining unchanged.
i summit , it is a waste of time to approach future policy on the precept the financial world will seek rationality.
i will state once again the damage now done is so EXTREME there is NO solution.
But the power dogs will do everything they can to keep equities up and long-rates down--why, because because behind all their sense of entitlement, they actually don't want to live on vast estates surrounded by security forces and trained to attack and/or kill dobermans and rottweilers and german shepherds.
Faber himself will not pin down how long they can get away with this, but he GUARANTEES at SOME POINT we will have a total world wide FINANCIAL CATASTROPHE, a complete collapse.
i am 68, so i guess i can count myself as a bit LUCKY that i am----my aunt just died at 105---i pray i get my 77, and am OUT OF HERE!:)--that is a SINCERE smile.Max
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