2007-10-20

The Dollar Crisis Will Soon Trigger a Global Investment Crisis(5)

However, I won’t give the Feds too much credit for being aboveboard because

I always laugh when I hear Bernanke speak of “fighting inflation” being one of his top priorities.

How does tinkering with the CPI to lower the true inflation numbers achieve this

(to be fair, the greatest changes in the formula used to calculate the CPI happened under Greenspan’s watch during the Clinton Administration)?

How does slashing interest rates by 0.50% so and making dollars cheaper to borrow (which will eventually expand money supply), achieve this?

Especially since the U.S. dollar supply outside the U.S. has increased from $600 billion in 1990 to over $6 trillion today?




By J.S Kim

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