The Fed is going to new heights of transparency by holding its first ever news conference. In an effort to rally support, Ben Bernanke will talk directly to the press letting us know there is nothing up the Fed’s proverbial sleeve.
Expected, more of the same, side-stepping inflation and continued devaluing the Dollar. Bernanke and his Fed continue to insist this is not a risk. They assure us the recent uptick in inflation is temporary. The jump in the prices of gold, oil and other commodities won’t flow through to the real economy, according to Neil Weinberg an financial editor at Forbes.
Weinberg further added the Fed was treading into dangerous territory like Japan in the late 80’s. As a longtime student of financial bubbles, I don’t buy this. I was in Japan following passage of the Plaza Accord in 1985 and saw how the artificial stimulus from an artificially stimulated yen led to real estate and stock bubbles. Japan has never recovered.
He went further to add, Now the Fed is artificially stimulating the economy by printing money at a rate the world has never seen. It’s no mystery where the money is going: stocks, emerging markets, commodities and Wall Street’s pockets.
By the axiom of history, it would seem Bernanke & the Fed are dooming us to repeat an economic crash similar to Japans. In uncertain economic times, as we are experiencing, those who are invested in a Tangible Asset Portfolio at a conservative 10% to aggressive 20% of their net worth will be better equipped to survive. Gold & silver are both seeking new heights as a financial safe-haven. Don’t be caught with out your own personal TAP.