In a speech to the Economic Club of New York, Federal Reserve Chairman Ben Bernanke addressed concerns about the falling US dollar.How? He says he is "attentive to the implications of changes in the value of the dollar" and will "monitor these developments closely".
That's a wonderfully Orwellian turn of phrase because it means precisely nothing.
He'll be "attentive" and "monitor those developments" -- which means he'll watch, but it certainly doesn't suggest he'll do anything abou itt. I can keep an eye on the guy who's breaking into my neighbor's house and "monitor" the "developments" but that's not much help unless I call the police or take action.
Henry Blodget recently explained that Bernanke has a "secret plan" to hold interest rates too low for too long, driving up inflation and bailing us out of our massive debts by allowing us to pay them off with devalued currency. Blodget wrote that "Consumers and the government are drowning under a massive debt load. One way to make paying off this debt easier is to make the dollars it is denominated in worth less. Bernanke will try to hasten this process as much as possible, taking it right to the point where our creditor China is mad as hell -- but not quite to the point where China actually stops lending to us."
Why is gold marching higher? Ask the central bankers
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