Yesterday, I watched Fed Chairman Ben Bernanke very closely as he spoke about the economy on CNBC. I noted two incredibly odd things.
Bernanke essentially promised zero interest rates and further money printing, possibly a QE3 event, if the economy goes any softer than it already is. Basically, he soothed viewers. Whether that was entirely politically motivated or not- is anyone's guess. But that's not the really odd thing.
Bernanke appeared to stutter throughout the speech as though- even he didn't believe the BS he was spouting.
The number one fear of most Americans is public speaking. For many people, public speaking is just something that gets easier over time. Professional speakers sharpen deliveries. Perhaps Bernanke didn't like the live stage or live TV yesterday. Maybe he is getting weary of the criticism. Whatever it was- it did not appear that Bernanke was getting more comfortable the longer he spoke- I thought that was very odd. Bernanke just kind of stuttered and stopped throughout the speech. His sentences lacked smooth transitions although I thought his statements were remarkably clear for a front man who has a giant ego and a perfect SAT score. Bernanke promised more FED accommodation for the foreseeable future. Zero interest rates.
I thought gold should have rallied 100 dollars.
Today I was reading this article. The writer has a bachelor's degree in psychology although he has been writing for various money/investing/economic publications for at least 10 or 11 years. Hardly an expert. In fact, anybody could have written this piece. http://money.cnn.com/2012/01/26/news/economy/thebuzz/index.htm
Here is the author, Paul La Monica. http://www.cnnmoneymediakit.com/pressLaMonica.html
I am beginning to think that Bernanke is actually showing signs of having a conscience. I mean at what point, after how many years, do most people finally throw up their hands and tell the truth? When do they finally say, "We're out of tricks. The world has a debt load that we cannot service. Any serious hiccup will bring about financial Armageddon. Sorry, folks. We wrote a check that our asses can't cash."
When does that speech happen?
Probably never. But you can bet I wasn't the only guy thinking that yesterday, Paul La Monica excluded.