Please help me. Does anyone know how long we're going to be in Oz? Is Jackson Hole Wyoming Oz? The Chairman says that the Fed maintaining its balance sheet by purchasing securities involves a lack of “very precise knowledge” of the impact of the buys and the possibility that increasing the Fed’s balance sheet further “could reduce public confidence in the Fed’s ability to execute a smooth exit from its accommodative policies at the appropriate time."
Here's just one little question that happened to pop into my mind-IF THE PUBLIC'S CONFIDENCE IN THE FED IS ALREADY ZERO, CAN IT DROP FURTHER?
What are they smoking in Jackson Hole? Can it be any clearer that the Central Bank is clueless?
Bond holders today have no purchasing power because the Fed has driven short-term rates to zero. In some people's minds, this lack of purchasing power is a problem. In Bernanke's mind, the solution is to inflate the economy and thereby lessen the value of savings even more.
Isn't it time to send Chairman Bernanke back to academia and get some hard money advocates at the Fed? Somebody needs to stand up and proclaim that the printing presses are being shut down and the days of the Greenspan/Bernake Fed controlling the price of money are over.