Bernanke: “Nechápem cenu zlata.” (I Don’t Understand the Gold Price) + slovenské titulky

Bernanke: “Nechápem cenu zlata.” (I Don’t Understand the Gold Price) + slovenské titulky


last week ben bernanke hilariously admitted on capitol hill that he doesn’t fully understand movements in the gold price this is not surprising given the way his inflated the fed’s balance sheet while holding interest rates at zero Keynesian economist just don’t get King said that goal is a barbarous relic and his theories certainly treat gold like a barbarous relic the more the government tried some mess of the free market the more long-term damage it does to its currency I’m not a Nobel Prize winner but I think the gold price movements can easily be explained by number one the fed’s balance sheet which is more than doubled over the past few years if you look on this graph you can see that the balance sheet exploded during the credit crunch in 2008 and number two the Fed is constantly increasing the amount of money in the system and this is the monetary base this isn’t m3 but from the monetary base you can see how much hard currency is out there relative to gold and number three the interest rates have been kept at zero so obviously there’s no value in just holding cash that cash has to go into other assets assets such as gold and that’s just what the Fed is doing meanwhile our government keeps piling on the debt just to sustain our economy you can see here that our deficit as a share of GDP is reaching scary levels and this basically shows that we need debt to keep our GDP up and as time goes on it becomes harder and harder to keep our GDP going without going into more and more debt and I think all these graphs are just common sense and they clearly explain why goals making new highs Ben Bernanke is either totally clueless or lying right through his teeth

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