Last week Federal Reserve Board Chairman Ben Bernanke reaffirmed the commitment of the Federal Reserve to keep interest rates low for years into the future. The Fed's zero interest rate policy (ZIRP) is designed to feed the profits of Wall Street banks and corporations at the expense of savers and retirees.
Interest income is at the lowest level in 43 years. Bernanke has declared war on retirees by trying to force them to invest in riskier assets like stocks or commodities.
Cramming Fed central planning down the throat of the American public will fail exactly like Soviet Union style central planning eventually failed in the 1980's. But in the end the American public will pay a dear price for following Bernanke economics.
The Mess That Greenspan Made:
Will Ben Bernanke’s War On Savers Kick Off The Long Awaited U.S. Gold Boom? --
The Federal Reserve sparked a huge rally in precious metals markets on Wednesday when it forecast super-low interest rates for the next three years and hinted at more money printing to come; the gold price surged more than $50 an ounce within about an hour and silver jumping almost $2 an ounce...Daily Reckoning:
How Ben Bernanke Rationalizes “Exceptionally Low” Interest Rates --
So Mr. Bernanke is fiddling the levers again, promising to keep rates lower than a sea snake’s belly until 2014. He might have just taken out an ad in the front page of the paper:Bloomberg:
“Fed to Savers: Go to Hell!” ...
Bernanke’s commitment to holding interest rates “exceptionally low” for an “extended period,” reeks of exactly the kind of insanity required to double down on a bad bet, of repeating the same experiment and expecting a different result...
Dollar Tumbles on Fed’s Interest Rate Pledge --
The dollar fell against all its most-traded counterparts after the Federal Reserve pledged to keep interest rates low for at least three years, spurring investors to seek higher-yielding assets...