You will love this clip Ben Bernanke might lose his job from his December 8th show Dr. Blankcheck von Moneypants.
|The Colbert Report||Mon - Thurs 11:30pm / 10:30c|
Funny but what the Fed is doing by destroying our Dollar and your wealth is not. Andy Xie says bernanke is POISONING our Economy.
“The policy consensus to prop up the global economy with stimulus will continue until inflation takes off or governments are broke,” Xie said. “This strategy is too expensive to last.”
Inflation will likely become apparent in 2011, and a “vicious wage-price spiral” could take place the year after, Xie said. He said the lag between money creation, which happened last year, and inflation may take more than 18 months.
Asian policy makers are already studying capital controls to limit “hot money” inflows that may stoke asset bubbles and force their currencies to appreciate.
“Inflation would scare central banks into tightening dramatically in 2012, which would pop the current asset bubble,” Xie wrote. “By then the global problem would be more serious than now. In addition to the leverage problem in the household and financial sectors, the government sector would also be hugely levered then.”
The trillions of dollars that governments are spending is “buying some time,” Xie said. One of the risks is that governments may not have enough money to “cushion the pain during the coming economic restructuring,” the economist wrote.
Suddenly you realize this is not something to laugh about.
“The whole world is drinking poison to quench the thirst,” Xie said. “It may feel like relief now. The sickness will strike in 2012.”