Bernanke’s prime time effort to calm America’s economic jitters failed.
December 07, 2010 – Fed Chairman Ben Bernanke has once again fanned the flames of gold investing and driven gold bullion prices to record levels. Bernanke’s prime time effort to calm America’s economic jitters failed in its purpose with all but the most wishful viewers.
Recent numbers reveal the true nature of the unemployment situation and most people now expect it to take considerably longer than Bernanke’s projected four to five years to return to normal. It is hardly reassuring to be told that if it does take longer a second recession dip becomes possible.
The announcement that the Fed is considering extending the QE2 bond buyout delivered an even harder blow. QE2 has already driven foreign nations to the brink of protectionism, having been told by the Fed that it is concerned only with our economic problems and not theirs. Further disregard for their wellbeing by expanding the Fed’s questionable and dangerous policies could turn that crisis into a catastrophe.
By now most Americans understand the seriousness of the economic situation and they are demanding real solutions. Instead we were informed that the Fed has a magic wand, which with a flip of the wrist it can make any unwanted response to its policies disappear.
So it was not surprising to see gold bullion prices driven to a record high on the heels of Bernanke’s interview. Usually when gold reaches new highs it meets growing resistance, and this is no exception. This time, however, the resistance is expected to give way quickly during the typically quiet end-of-year trading period. With predictions that gold could reach between $1450 and $1500 during that time and expectations for a strong early surge in 2011, conditions are now perfect for gold bullion investment.
