What can Chairman Bernanke say about the U.S. Dollar Index? After all the U.S. Dollar Index has declined by nearly 17.0 percent since June 7, 2010. What will Chairman Bernanke say about the zero percent interest rate policy that he has put into place since December 2008 for the too big to fail banks. Has anyone looked at the interest rate on a savings account lately? We may as well put our cash under a mattress, outside of writing a check there is very little use for a bank these days. What are the retirees on fixed incomes going to say when they see prices increase on a daily basis as there money continues to buy less and less. Will Helicopter Ben address the high oil, gold silver, copper, and every other commodity prices? Perhaps, he will simply say that it is demand driven.
The one question that I would ask Chairman Bernanke would be, if we are a free market society then why are the Fed funds rate set by the Federal Reserve and not set by the market place? How does the Fed or anyone else know what is best for the free markets. Then I would ask him if we really live in a free market society? How can the banks can still borrow money for nothing on a daily basis and charge an average of 17.0 percent on a credit card? What do these banks do with all of those cash reserves that are created everyday from QE-2?
Ah, tomorrow is going to be fun watching these questions get answered, if they are asked. As far as we know he may just take a page out of Alan Greenspan's book and simply mumble an answer that people could never understand. Greenspan was good at answering his own questions despite being asked something entirely different. This is going to be a must watch. In the trading community this press conference will get higher ratings than a Seinfeld reunion.
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