Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank “will do all that it can” to ensure a continuation of the economic recovery, and outlined steps it might take if the growth slows.
“The Committee is prepared to provide additional monetary accommodation through unconventional measures if it proves necessary, especially if the outlook were to deteriorate significantly,” the Fed Chairman said today in opening remarks to central bankers from around the world at the Kansas City Fed’s annual monetary symposium held in Jackson Hole, Wyoming.
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Comment: The Fed chairman tries hard to keep up appearances. While he should know that his institution is built on deceit, the more so he has to act like a "honest Ben". He fakes that the Fed had the tools to prevent deflation and adds morphine that no inflation is in sight. Truth is that the Fed can't prevent deflation in the end and what most likely Fed actions will provoke is more of an asset bubble, particularly in bonds. As of now the asset market suck up a lot of the liquidity that the Fed has created and lending insitutions sit on tons of cash. The US central bank has created an explosive situation and each day we are moving closer the a deflationary implosion or a hyperinflationary explosion. The odds are still up for both sides of the coin.
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