Federal Reserve Barnanke,Obama herd Americans into unstable artificially inflated bubble stock market
''There are also worries that by keeping interest rates at ultra-low levels the Fed could bubbles in assets such as stocks.'' -Associated Press
The low to no interest on dollars in bank or money market accounts force American savers and investors into riskier stock markets at a time when thwe U.S.government already knows this is what happened last time in 2008 and in 2000 when American middle class money was stolen and siphoned off into offshore accounts from which they never returned.Besides the CIA itself certain of its right wing international money laundering elite allies including Israelis shorted and dumped stocks from offshore accounts and replaced those shares dumped back into American markets with dollars in their offshore accounts.
WASHINGTON — Chairman Ben Bernanke is defending the Federal Reserve’s low-interest rate policies and seeking to calm fears that super-low rates risk igniting inflation or rattling investors.
Bernanke said Friday that any Fed move to raise rates prematurely could derail what is still a modest U.S. economic recovery. The central bank’s low-rate policies are intended to encourage borrowing and spending to boost the economy. Higher rates would make borrowing more expensive.
Bernanke said the Fed’s policies mirror what other central banks around the world are doing.
“Long-term interest rates in the major industrial countries are low for a good reason: inflation is low and stable and, given expectations of weak growth, expected real short rates are low,” he said.
“Premature rate increases would carry a high risk of short-circuiting the recovery, possibly leading — ironically enough — to an even longer period of low long-term rates,” he said.
His comments, which amplified testimony he gave to Congress this week, were delivered in San Francisco to an economic conference sponsored by the San Francisco Federal Reserve Bank.
Critics, including some Fed regional bank presidents, have expressed concerns that the Fed may be raising the risk of financial instability by pursuing its current program of purchasing $85 billion per month in Treasury bonds and mortgage-backed securities to drive long-term interest rates down farther.
These bond purchases represent the third round of a program known as quantitative easing. They have driven the size of the Fed’s asset holdings above $3 trillion and raised fears that by inflating the money supply, the Fed is raising the risk of future runaway inflation. There are also worries that by keeping interest rates at ultra-low levels the Fed could bubbles in assets such as stocks.