having fully wrecked world's econ, central bankers

The Velocity of Money Is Coming, Along With Big Price Inflation?

Tuesday, May 01, 2012 – by Staff Report

Ben Bernanke

Bernanke: Be Humble! ... "Humble" is typically not an attribute associated with the Federal Reserve (Fed), especially in light of the trillions of dollars recently printed. Yet, in his latest press conference Fed Chairman Bernanke called for humility: we must be humble in setting monetary policy! The problem is, Bernanke's definition of the word "humble" appears to be something entirely different from what – in our humble opinion - common sense might expect. – Axel Merk/Merk Funds
Dominant Social Theme: "We are humble because we are aware of the great monetary forces at work and will do all we can to triumph over them. Thank you. I am Ben Bernanke."
Free-Market Analysis: Axel Merk of Merk Funds is out with another good analysis of the tremendous monetary inflation now inherent in the Western dollar reserve system and its eventual impact.
We have always argued ... wait. Sooner or later there will be tremendous price inflation.
Does Merk agree? He is troubled, at least by the language that US Federal Reserve Chairman Bernanke is using in calling for "humility" and points out that Bernanke's sense of it and a normal person's is not the same.
This is, in fact, a kind of elite dominant social theme, in our view. It is the presentation of a fear-based meme that only top money minds like Bernanke's can successfully manage what's going on.
It is a kind of promotion as well, for what Bernanke and other central bankers are doing these days is nothing more than a kind of damage control. Today, having fully wrecked the world's economies, central bankers want to appear "humbled" by the forces they have so destructively manipulated.
The idea may be to create "order out of chaos" – to build a fully globalized monetary system with a worldwide IMF money – and a worldwide central bank (also perhaps the IMF) as well.
But if there is actually occurring a take-down of the world's economy by happenstance or on purpose, it is not necessarily prudent to proclaim it! Better to maintain "humbleness" – and that is the key word that Bernanke seems to have seized on, and that Merk has presented to us within his larger analysis.
The use of the word happened this way ... Bernanke was asked at his recent press conference discussing the latest Federal Open Market Committee (FOMC) statement to contrast the US and Japanese experiences regarding current and past economies.
Bernanke (Merk explains) argued that the US avoided the Japanese experience because ... "We acted aggressively and preemptively to avoid deflation." According to Merk, Bernanke focused on the humility (whatever that means) of a move to recapitalize banks. He suggested ...
"... that we will avoid some of the problems that Japan has faced. That being said, I think, it's always better to be humble and just to avoid being too confident, and we need to continue to maintain strong monetary policy support to make sure that the economy continues on a recovery path and returns to a more normal situation."