The dollar hit its lowest level since July 2008 Thursday, putting more pressure on savers, people living on a fixed-income and all consumers facing soaring commodity prices, most notably in energy.
Somewhere, Ben Bernanke is probably smiling.
Yes, Bernanke — and Treasury Secretary Tim Geithner — talked tough about the dollar this week but “currency depreciation is always a central bankers dirty little secret,” says Vincent Reinhart, a former director of the Fed’s Division of Monetary Affairs. “They don’t mind some depreciation at time…The trick is to generate some depreciation but not a lot.”
This is a great video explaining the games that the Federal Reserve plays with inflation and US Dollar depreciation. It is truly amazing that any institution would want to do anything like this simply by looking at the past 50 years. The Federal Reserve calls this action “quantative easing”.
Vincent Reinhart is the individual being interviewed in the video, is someone that knows what is going on in this area, and his words should be taken to heart.
Twitter @1mjl
-- Michael Lebb
www.1mjl.com
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