Published by clickbroker.blogspot.com.
Hard as it is to believe with high food and energy prices, statistics can tell you anything you want to hear. What can Bernanke actually do about deflation? Common wisdom would say QE3, 4, etc. But QE does not drop spendable money from helicopters as Ben wants us to visualize. It has not even expanded credit; it just lowered the cost of credit. And that is only for the best credits.
The majority of QE dollars have been sterilized by finding their back to the Fed’s balance sheet in the form of excess bank reserves. To Bernanke’s great distress, only Congress can hand people checks. So to quote Al Gore the “inconvenient truth” is that even if Bernanke can convince us that we have deflation, there is absolutely nothing he can do about it.
[JavaScript Games by Michael Steinberg: Color Splat Game, Magic Word Game and Scramble Word Game.]
What if there really is deflation?
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