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Washington Alert (redesign-largerALG)-1

Kudlow: Bernanke and Ethanol Subsidies Sink Egypt

inflation «

Pento: Bernanke’s 2 Big Lies in 60 Minutes

Bernanke: 60 Minutes, 2 Big Lies
By Michael Pento

This past Sunday on the CBS program “60 Minutes”, Americans received a massive dose of mendacity from our Fed Chairman. Mr. Bernanke’s shaky delivery, and even shakier logic may cause faith in America’s economic leadership to evaporate faster than the value of our dollar. In particular, Bernanke delivered two massive distortions:

Lie #1 – The Fed isn’t printing money.

Lie #2- Bernanke is “100 % confident” that, when necessary, the Fed can control inflation and reverse its accommodative monetary policy.

Get full story here.

Business Week: Fed’s Easy Money to Push Oil Over $100 a Barrel

By Mark Shenk and Grant Smith

Oil prices have hovered around $78 a barrel most of the year, providing little excitement as other commodities, including copper, gold, and cotton, have enjoyed record runups. Global economic growth has not been brisk enough to drive up oil demand substantially, U.S. inventories have been ample, and the Saudis have been pumping enough to guarantee a plentiful supply.

Get full story here.

Gilbert: Mad Fed Should Beware Unquantifiable Outcomes

By Mark Gilbert

Albert Einstein defined insanity as doing the same thing repeatedly and expecting different outcomes. The crazy gang at the Federal Reserve should heed those words when debating how much more market manipulation to inflict on the world of fixed income.

The worrisome thing about so-called quantitative easing — a concept still novel enough to mean whatever the Humpty-Dumptys in central banking want it to — is that its consequences remain unquantifiable, and the perceived need for more central-bank purchases of securities should make investors uneasy.

Fed Chairman Ben Bernanke said in an Oct. 15 speech that it’s difficult to work out the “appropriate quantity and pace of purchases and to communicate this policy response to the public.” He also said that “nonconventional policies have costs and limitations that must be taken into account in judging whether and how aggressively they should be used.”

Imagine a surgeon telling her patient she wasn’t sure what size scalpel she’d be using or what the likely outcome of the procedure might be. Or an architect admitting to a planning committee that he wasn’t confident about his stress calculations or the durability of the newfangled materials he was using.

Get full story here.

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