April 08, 2011
– Comments (7)
According to Harry Dent, the Fed is checkmated.
Wish I could embed a video like I've seen done before.
It's worse: it's double checkmate.
We have another great recession like what he calls for, we have a currency crisis/debt crisis...He expects people to flock back into the USD and Euro in the event of another recession and this is why he's wrong and probably has been wrong about commodities for a while. A dramatic shift has recently occurred regarding the perception of major fiat currencies as safe havens. Over the past few months there has been a plethora of bullish news for the dollar, ranging from the acceleration of the European debt crisis, to the Japanese earthquake and tsunami. During this same time frame the dollar has steadily LOST value, while precious metals and commodities have done exceedingly well.
Most of the buying in commodities is not due to the belief in the global growth story, but instead as a means to preserve wealth.
Global growth expectations have been ratcheted down considerably, since late last year. China, India, Brazil and now Europe are all raising interest rates and mandating higher bank reserves, which is a clear signal of much slower growth ahead. But the dollar has been down and commodities and precious metals up...Why?
The ONLY way we can possibly get out of a major economic disaster at this point is to inflate our way out of it. We need either high, sustainable GDP growth or very high inflation to be able to afford the debt but right now we are mostly getting inflation.The rate of change in inflation is far outpacing economic growth...Bernanke, I believe, will continue with QE and low interest rates until he simply can't anymore. We can't afford another recession right now, with our economy in this current state. In other words, commodity inflation--not matter how high it becomes-- will not be what motivates him to change monetary and fiscal policy...
"All investors should lighten up on or sell oil, silver, and gold as the U.S. dollar looks like it has bottomed and should rise ahead," he writes in the March issue of HS Dent Forecast.
When someone writes something as out of touch as that, you gotta wonder. He's right about the Fed being "checkmated" though: "suggesting the Ben Bernanke & Co. are damned if they do QE3 -- because the bond market will freak out -- and damned if they don't -- because the economy and financial markets are so dependent on easy money."
The correct answer on QE(n) is "don't" but that's not the one he'll choose, since he's beholden to the leaders of the financial markets and their purchased politicians.
So in defense, we have to continue to buy gold, silver, and oil.
rfaramir - agreed. To be bullish on the dollar even while acknowledging Bernanke's inability to spur recovery is just cognitive dissonance. To bet on the dollar, you need to be confident in Bernanke's power, competence, and integrity.
"To bet on the dollar, you need to be confident in Bernanke's power, competence, and integrity."
Not to mention his incentives: he has the power to print money from nothing, he profits from this activity, he has every incentive to continue to do so as long as he can get away with it and to lie to the public about it to justify prolonging it.
End the Fed! (Audit it first to get everyone else on board once they see it for what it is.)
This may be some help. Some sources are harder than others, like the Yahoo one you referenced above. I couldn't get that one to embed at all.
YouTube is the easiest place to practice.
When you select your video, look to the right of it. You'll see this under the url box - Embed
Click the blue icon next to it to customize. You can select a colored frame if you'd like. YouTube will remember that & use it on all your embeds in the future until you change it again.
Click on the size you want, I usually use the 445 x 364.
Now highlight the entire embed code in the box.
Copy & paste to a blog.
Highlight the entire code again & click on the unlink icon at the the top far right of the comment box.
There should be no blue type showing.When you preview the comment you should see the video. If you see the code, something is wrong, don't post & try again.
Good luck & let me know if you need any more info!
Sigh. Would have been a good idea to double check that the instructions I wrote up 2 yrs ago would still be relevant..
Add this to the beginning of the other steps...Under most videos, to the left, is a "share" icon. Click that to get to the embed feature.