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Wednesday, February 27, 2008

Headlines of the Day - 2/27/08

Euro surpasses $1.50 mark for first time…

Gold Nears $1,000 ounce…

Bernanke Hints at More Rate Cuts…


The connection is fairly obvious.  The escalating price of Euros and gold in dollars is a direct result of the Fed’s full throttle on money creation.  Fed Chariman Benrancke is notorious for his assertion in the past that, if necessary, the Fed would load helicopters with currency and dump it into the streets to stem any recessionary correction to the economy.

No pain, no gain applies to economic business cycles.  The Fed’s readiness to bail out financial institutions with more inflation is akin to expecting to put out a fire by dumping gasoline onto it.

Posted by Thomas E. Brewton on 02/27 at 02:33 PM
Economics • (5) Comments
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