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  • buz_idea20 buz_idea20 Mar 29, 2012 8:37 AM Flag

    Bernanke speech is bullish for hard assets such as gold

    “After nearly two years of job gains, private payroll employment remains more than 5 million jobs below its previous peak; the jobs shortfall is even larger, of course, when increases in the size of the labor force are taken into account. And the unemployment rate in February was still roughly 3 percentage points above its average over the 20 years preceding the recession. Moreover, a significant portion of the improvement in the labor market has reflected a decline in layoffs rather than an increase in hiring,” Bernanke said.

    He added, “The number of people working and total hours worked are still significantly below pre-crisis peaks, while the unemployment rate remains well above what most economists judge to be its long-run sustainable level.”

    Bernanke’s recent statements about high unemployment suggest that the central bank is prepared to keep interest rates near zero until at least late 2014. When inflation is factored in, ultra low interest rates translate into negative real rates, an environment that is bullish for hard assets such as gold and silver.

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    • high gas, food, housing and other prices may be a direct result of him picking winners and losers and allowing these monopolies to continue via bailouts, you can only monetize so long while the whole world continues to try and get of the dollar reserve standard. Ben's main mandate is just to lie to the public, extend and pretend.

    • Since Bernanke believes cyclical rather than structural factors are the primary source of long-term unemployment, he expects stimulus QE3 to counter the weak job market.

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