The threat of US and hence global inflation took a drastic turn for the worse today with President Bush's announcement that Ben Bernanke will precede Alan Greenspan as the next Federal Reserve Governor.
Yes, fans of Gold and enemies of fiat currencies are reminding everyone to re-read this infamous Bernanke quote made just under 2 years ago.
"... "U.S. Dollars have value only to the extent that they are strictly limited in supply. But the U.S. Government has a technology, called a printing press [or, today, its electronic equivalent] that allows it to produce as many U.S. Dollars as it wishes at essentially no cost. By increasing the number of U.S. Dollars in circulation the U.S. Government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation." Fed Reserve Gov. Ben Bernanke
Stock prices should be defended at all costs because major declines would be deemed as a threat to national security. A
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