Uncle Ben in a promise blow on his (unknown yet) successor policy

Bernanke in a verbal blow crushed yesterday almost all of the markets. It is s good moment to prove that the market consists of fools, attracted there to gift their money to the rest – the minority of clever mafias that stay behind the processes.

Who is Ben Bernanke? The soon exiting Chairman of FED. Yes, his term in office is expiring, and at the same time he is making predictions on the QE program that will happen with his successor. A successor, that no one knows who will be. Even the successor himself does not know he will be :) So Bernanke is speaking on policy of the next Chairman. And markets do react on this.

But Bernanke has an advantage of not having to fulfill his promises. He can say anything. He can say even that will raise the interest rates and will implement a gold standard. He simply does not have to fulfill this :)

But who will be the next? Nobody knows. For sure it will not be a clever man. No wise financier will accept to take the FED after Bernanke and with Obama in White House. In fact even Bernanke himself looks as he does not like to have a new term. No one that can think will accept this.

Generally the FED chairman is appointed by the President and voted in Senate. With an extremely leftish Democrat in the White House and a Democratic majority in Senate, it is logic to assume, that some kind of a socialist will become the new FED Chairman. I.e. the money print will continue. It must be clear that the Republican majority in the House will have no any formal way to interfere. I.e. there is little doubt on the profile on the next Chairman. Only the name is missing.

On second place, it doesn’t matter who will be the Chairman when the government still has an enormous deficit, and a debt of about 100% of GDP. To survive financially such type of government relies mostly on money-print. With eventual cancelling it the market interest rates will skyrocket and Obama will not be able to pay its debt. FED is the main buyer of securities now with no many candidates to replace it. So no matter who will be the Chairman he will have to feed the White House socialist policy.

And finally, such type of verbal action leads to losses for everyone. All asses are going down. Everyone is losing – from the retirees to young venture investors. Trillions are being lost after such words. So all this looks just as a pressure to the prices so informed investors (mafias) to buy cheap and make fast profits. I.e.  - to rob the fools :)

June 21st 2013

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