11.19.09
Peter Boockvar explains exactly why Bernanke and the Fed do not understand inflation. If you watch any of Bernanke’s testimonies in front of Congress, he often talks about US unemployment numbers, US productivity numbers, US output gap, US wage/price levels – but he misses the BIG POINT:
THE REST OF THE WORLD “DOES NOT CARE” ABOUT UNITED STATES’ OUTPUT GAP NUMBERS, EMPLOYMENT LEVELS, PRODUCTIVITY NUMBERS AND WAGE LEVELS.
We will see our cost of living RISE tremendously due to rising foreign demand for commodities including food, metals, fuels. Since we are mostly a consumer economy our only hope is a STRONGER dollar – but since our dollar is on a long term weakening trend, the price of most things will buy will continue to rise. Watch this video for Peter’s explanation – it’s terrific:
