left right politics showbiz tech invest good life gossip fun hot
Mother Jones Hot Air Huffpo Variety Engadget Seeking Alpha Lifehacker TheSuperficial Daily Beast reddit
Daily Kos Michelle Malkin Politico Billboard Boing Boing TheBigPicture Luxist TMZ.com Fark BuzzFeed
ThinkProgress RightWingNews First Read CNN Showbiz Gizmodo FT Alphaville Joystiq Perez Hilton 4chan memorandum
Crooks+Liars Power Line CNN ticker E! Online Techcrunch Josh Brown Kotaku gamer Bastardly Post Secret Techmeme
TalkngPtsMemo Ameri..Thinker Swampland TV Guide Ars Technica 24/7 Wall St. TreeHugger Egotastic hascheezburgr Drudge
The Raw Story NewsBusters The Caucus Ent. News Mashable bloggingstocks Consumerist PinkIsTheNew dooce digg
Wonkette Wizbang fishbowlDC HlywdWiretap Google blog DealBook lifehack.org CelebrityBaby Someth'nAwful trends
Atrios Taki Magazine WashWhisprs DeadlnHllywd Read/Write Jeff Matthews 43folders GoFugYourself Neatorama PSFK
Firedoglake Big Hollywood The Fix MSN Ent. OReilly Radar PhilsStockWorld Autoblog Page Six Cool Hunter BBC
Young Turks IMAO Capital Gains Rot'nTomatoes GigaOM Daily Rec'ng Deadspin BestWeekEver stereogum Timespop
Americablog AceOfSpades Open Secrets Cinematical ProBlogger Zero Hedge DownloadSqd Dlisted CuteOverload media eye
Politicususa Redstate WikiLeaks law Cool Tools Bespoke MediaZone PopSugar Dilbert blog TVNewser
CounterPunch Jawa Report econ law.alltop Scobleizer BtwTheHedges Deviant ArtHollyw'dTuna gapingvoid BuzzMachine
TalkLeft Patterico EconLog Volokh Consp. Apple Blog Minyanville Gothamist x17online DailyGrail MediaGazer
Feministing Townhall.com Freakonomics Legal Insurrec.. Valleywag Fast Money Curbed DailyBlabber Prof. Hex Steve Rubel
PolitAnimal OutsideBeltwy CrookedTimbr Conglomerate mozillaZine RealClearMkts FabSugar Gawker OvrheardinNY MediaBlgNRO
Truthdig Moonbattery MarginalRevo SportsLawBlog Smashing W$J Mktbeat Gridskipper Radar Last.fm Threat Level
Alternet RealClearPoli crime W$J Law BlogTechdirt AbnormalRtrns Material Defamer kottke.org Seth's blog
Media Matters Instapundit CrimeblogsBalkinizationMAKE RandomRoger Sartorialist Jossip PumpkinChuckin mediamatters
The Nation Hugh Hewitt All Crime Credit Slips SrchEngLand Stock Advisors Drink'nMadeEasy Just Jared Maps Mania Newshounds
Maddow Blog PJ Media Smoking Gun FindLaw VentureBeat Slope of Hope Mark Cuban Celebitchy CollegeHumor FAIR

Monday, April 11, 2011

Bernanke Shows Off His Rat DNA

Charlie Sheen has tiger blood. Federal Reserve Chairman Ben Bernanke has rat blood. That's the conclusion you come to when analyzing the starkly different decisions made this past week by the Federal Reserve and the ECB (European Central Bank). Rats like to multiple and that is what Bernanke is doing with the dollar – multiplying them. The ECB sees inflation and raised its interest rates. A measure designed to shore-up the Euro currency. Bernake happily continues with his counterfeiting operation (QE-2) as he keeps his foot on the dollar printing accelerator. Damn the dollar, full speed ahead.

Caroline Baum of Bloomberg goes over the Bernanke experiment:
Bernanke, Trichet Expose Their Respective DNA --

Two central banks look at the same underlying fundamentals, reach two different conclusions and take two different policy actions...

For the ECB’s Jean-Claude Trichet, the goal of the rate increase was to prevent “second-round effects in price and wage-setting behavior” from boosting inflation further. Euro- zone inflation rose 2.6 percent in March from a year earlier, above the ECB’s target of no more than 2 percent over the medium term. Trichet judged that the action was warranted to anchor inflation expectations.

Stateside, Fed chief Ben Bernanke looked at U.S. inflation of 2.1 percent and came to the opposite conclusion. He told an Atlanta Fed conference last week that any inflation from commodity prices would be “transitory” as long as inflation expectations remain “stable and well-anchored.”

Who’s right?

Two Roads Diverged...
related:
Doug Nolan / Asia Times:
Diverging policies, again --
This is a dangerous period. Global liquidity is way too plentiful, while speculation has become too all-embracing and rewarding. Indications of monetary excess are everywhere. Indeed, we're in the midst of the biggest financial bubble in history (the "global government finance bubble") - yet everyone seems comfortably oblivious. The Fed will persevere with its doctrine of ignoring asset prices, government borrowing excesses, market distortions and rampant speculation. These don't, after all, even enter into their policy framework. The Fed is also determined to disregard increasingly entrenched inflation dynamics, convinced that its interest rate policy, quantitative easing programs and dollar neglect aren't behind the upsurge in commodities prices. Amazingly, the Fed likes what it sees and, much to the markets' liking, clearly prefers to stay the course...

zero hedge

Calculated Risk

Mish's Global Economic Trend Analysis

Paul Krugman - NY Times

The Big Picture - Barry Ritholtz

naked capitalism - Yves Smith

Pragmatic Capitalism

Washington's Blog

Safe Haven

Paper Economy

The Daily Reckoning - Australia