Dear Federal Reserve Bank of America,
We the People heard you loud and clear when you decided to bail out failing financial institutions. We waited to listen to your plan, as “Helicopter” Ben was supposed to be such a genius economist. Instead being the benefactor of a genius plan, We the People got screwed again. For over 1 year now, you have kept key interest rates at the 0 – .25% mark.
Mr. Chairman, and fellow members, American’s just aren’t that stupid. Through all of your sleight of hand, and Timothy Geithner’s deceit, we know you have given the banks our money for free, just so they could lend it back to us at a profit. We are acutely aware that JP Morgan Chase was allowed to take over banks, such as Washington Mutual, who were said to be illiquid and failing, but actualy were not (for those of you who trust our government and the fed, I highly recommend you read this article). We know that Geithner is lining Goldman’s pockets with cap and trade dollars.
We have accepted these blatant and obtuse breaches of law and procedure in the hope that our economy would recover. Now, despite your best efforts, with the light of recovery trying to flicker on, you continue to prove that academia is no replacement for experience, logic, and common sense.
Mr. Bernanke, it’s too late for you to debate, Inflation is Already Here!
Let’s take a look at the Reuters – Jefferies CRB Index, the most acurate predictor of inflation over the past 50 years, and perhaps the most important index in all of the markets.
On October 24th, I wrote a twitter post stating that the CRB has formed a well known chart pattern, predicting rising inflation. Here’s the chart I made of that rounded bottom pattern:
I also said that the rounded bottom on the CRB could become a cup with handle, and it looks like that’s going to happen as well:
In case you’re not familiar with the CRB, and what it is and does, here is an article I posted on Predicting Inflation & Deflation with the CRB Index
So looking at these charts, it’s clear the CRB is in an uptrend. The current rounded bottom shows the CRB headed from 280 to the range of 340 – 360. This means commodity prices, including gold, oil, natural gas, gasoline, and food are going to rise.
I look forward to your poll answers and comments below:
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