If nothing else, Bernanke’s press conference “has taken the downside risk off the table” for buying gold coins.

June 23, 2011 – If nothing else, Bernanke’s press conference “has taken the downside risk off the table” for buying gold coins, Oliver Pursche, co-portfolio manager of the GMG Defensive Beta Fund told The Street. Other than that, it looks like we’re in for more of the same.

The Fed lowered its growth forecast, extended its predictions for easing of unemployment, and raised its estimate for core inflation – so what is the plan to address those issues?

Oddly, officials are taking a wait and see attitude towards the economy – waiting to see if the poor performance is, as Bernanke continues to espouse, a transitory situation caused by unexpected global shocks, or something else altogether – say ineptitude on the part of the Fed.

In the meantime, according to the FOMC release, conditions “are likely to warrant exceptionally low levels for the federal funds rate for an extended period.” Worse, Pursche believes Bernanke “left the door slightly open to revisit the potential for monetary easing.”

Surely Bernanke must have shared some profound insight to justify continuing the ruinous interest policy and the mere suggestion of printing more money.

“Part of the slowdown is temporary, part of it may be longer lasting,” Bernanke said. Hard to argue that, but how about a little clarification? “We don’t have a precise read on why this slower pace of growth is persisting … weakness in the financial sector, problems in the housing sector, balance sheet and deleveraging issues—some of these headwinds may be strong or more persistent than we had thought.” Oh, I see – in other words, you’re clueless.

When does enough become too much? How far do we have to sink before our politicians close ranks around the Republicans who are now calling for and end to three decades of the self- serving, power-grabbing, big-money cronyism of the Federal Reserve? I suspect we’ll see the devil riding a snowmobile first.

All in all, I found absolutely nothing of merit in the press conference. And I disagree with Pursche – there never was a downside risk in buying gold coins.

Kevin Johnson

Senior Staff Writer – GoldCoin.net