If Bernanke’s view of the economy were anything to do with reality I might have come done from my opinion that the current state of our economy cries out for the strongest position in gold coin investments in recent times.

May 1, 2011 – If Bernanke’s view of the economy were anything to do with reality I might have come done from my opinion that the current state of our economy cries out for the strongest position in gold coin investments in recent times. But alas, he only repeated the same old diatribe in face of overwhelming evidence that nothing is as he says it is.

The Associated Press was quick to attribute yesterday’s new highs in the stock market to the Fed’s statement that “central bank officials expect the economy to continue recovering.” But “since the recovery began in mid-2009, the U.S. has grown at an average annual rate of 2.8%,” says the Wall Street Journal. That’s far below that of ever economies and growth nearly ground to a halt last quarter, dropping to 1.8%.

More important, about 40% of what growth we have seen has come from exports. While Treasury Secretary Tim Geithner proclaims that “we will never embrace a strategy of trying to weaken our currency to gain economic advantage at the expense of our trading partners,” everyone else in the global community sees Bernanke’s cheap dollars as trade manipulation and nations everywhere threaten to stir up all out trade wars.

Bernanke isn’t fooling anybody abroad. The dollar plunged again, to it’s lowest level “since the summer of 2008, but officials aren’t showing signs that they are alarmed by the currency’s descent or acting to stem it.” Of course they aren’t.

Bernanke told the press conference that the deficit is our biggest problem today, leaving little doubt about the true purpose of his policy: he intends to inflate our way out of debt. That is the quick fix to the most pressing issue and Bernanke is willing to risk hyperinflation and economic collapse to cheat our way into solvency.

For the time being we may continue to get away with it because the world wants to keep believing that the emperor is fully clothed. “But too much of a good thing is bad for you,” Kit Juckes, chief currency strategist at Société Générale said in the Wall Street Journal. “If this spins out of control, then it’s fairly dangerous, and we’re pretty close to that point.”

As it is with every con game, the time will come when the Fed’s attempted manipulation of the global economy will be fully exposed. The victims, as always, will be furious and insist their leaders exact revenge. And Bernanke will be out of bullets.

Until I see any sign of real action being taken on real issues I’ll keep recommending the strongest position possible in gold coin investments to prepare for payback time.

Kevin Johnson

Senior Staff Writer – GoldCoin.net