Tuesday, September 15, 2009

What color is the sky on this guy's planet?!

In case ye socks missed it today, the chairman of the Federal Reserve announced the recession is "very likely over."

That's right. We can all breathe easier now.

Ben Bernanke got up in front of the Brookings Institution up in DC to mark the anniversary of Lehman Brothers collapse to make one of the most ridiculous statements heard in that neck of the woods since . . . well, since The ObamaNation spouted his usual pack of lies to Congress last week.

Anyway, according to the fed chief, things are getting better. Not because people are finding jobs and paying their mortgages again. No, his rationale is that things are getting better because retail spending jumped 2.7% last month.


So, people are spending more of the little money that they have, with scant prospects of replenishing their accounts. And, that's a good thing?

I wonder when it will dawn on Mr. Bernanke, as it did on someone with far less training in the science of economics, that the increase in spending is NOT an indicator of increased confidence. Rather, it is due to 2 things:

1. The stupid "Cash for Clunkers" pogrom . . . er . . . program that had all the yayhoos running to car lots last month.

and, more frighteningly

2. Inflation is finally starting to kick-in, an inevitability since his "reserve" system has been cranking out greenbacks with wreckless abandon for so long . . .

Time to start converting that currency into something or things that may hold value . . .

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