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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (5210)	1/16/2004 10:30:40 AM
From: russwinter	Respond to of 110194

Bernanke is staking a claim, that we can attack the job situation because "inflation is low". So basically he is seriously mistaken (and terminally for the US and global economy) on several counts in his belief system: 1. inflation came out of the bag in a major way in 4Q, 2003, and is NOW rearing it's ugly head. 2. the only way many firms can meet the challenge of this tidal wave of input costs (posted here regularly), is to layoff more US workers, and transfer MORE labor costs overseas. So in an ironic and perverse way Bernanke's belief system feeds into both 1 and 2, and will be strongly challenged in the weeks and months ahead by "just the facts" reality. In other words just because these Wizards of Oz "experts" believe something, doesn't make it so. History is full of people in authority making gigantic errors and trying to take the easy way out, that end up leading to disasters. I think our jobs as investors and speculators is to stay "ahead of the curve" on this , and not "behind the curve" like the Fed and the moral hazard infected rabble amgdata.com that follows their cheerleading road show.