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Monday, October 15, 2012

Bernanke Calls for Stronger Currencies - WSJ.com

Bernanke Calls for Stronger Currencies - WSJ.com

Federal Reserve Chairman Ben Bernanke encouraged policy makers in developing economies to let their currencies appreciate, delivering a strongly worded counterargument to their own critiques of the Fed.
Many central bankers in developing economies have complained that the Fed’s easy money policies are hurting U.S. trading partners around the world. One common refrain is that when the Fed prints money, it causes investors to search for other places to put their money, causing a potentially destabilizing rush of funds into less developed economies. The critics say this fuels inflation and asset bubbles in their countries, and threatens to push their currencies higher to levels that would curb their exports.
Mr. Bernanke, in remarks prepared for a panel discussion at International Monetary Fund meetings in Tokyo, said policy makers in these countries could slow this rush of capital and some of its negative effects by allowing their own currencies to appreciate. Instead, he argued, they were doing just the opposite. 

Higher currency = Market roll over, thanks Ben noted. All the talking heads are clamoring this morning about Gold prices, Gold is and always has been a buy and hold, if you are buying Precious metals for other reasons other beyond buy and hold ( such as a quick buck ) you are in the wrong market.

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