Bill Bonner Says Just Print More Money: The Easy Way to Manage and EconomySubmitted by bobbyw24 on Thu, 12/23/2010 - 10:46
By Bill Bonner • December 23rd, 2010 • Related Articles • Filed Under
About the AuthorBest-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
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Filed Under: Africa • Currencies • Market • The Americas • The Bonner Diaries
You can't say it didn't work. At least one of Mr. Bernanke's aims was realized.
He went into the bond market, and bought US debt, in order to lower long-term interest rates. That was a bust. Long rates went up, not down.
He also wanted to raise inflation rates. No success there either; consumer prices are flat. The CPI is still registering the lowest increases since the '50s...rising at about 1% per year.
Finally, Mr. Bernanke was counting on the "wealth effect." He would put more money in speculators' hands. They would bid up asset prices. People would feel wealthier. Presto! They would act wealthier - spending and investing more money and thus spurring the economy towards a full recovery.
Well, part of it worked. Asset prices went up. The Dow went up another 55 points yesterday.
Here's Bloomberg's report: