Bernanke On Imports

Folks,

If the FED policy was a good thing, how come they say things that are simply not true?

Among other things, Bernanke said yesterday at the congressional hearing: "A lower dollar
only affects Americans inasmuch as they purchase imports."

This is 100% sheer nonsense, with history against it.

Any time the price of imports rise because of a declining dollar, American manufacturer/
competitors of the importers will raise their prices to match the newly higher priced imported
goods. This happens every time, every category.

As the dollar tanked in the late 70's Japanese cars got far more expensive for the US
consumer, but Detroit then jacked up their prices on USA made cars (instead of making better
cars) so all Americans experienced higher prices on all cars. We got lousy cars, the Japanese
got more money, big biz/gov rejoiced.

Bernanke is a scholar in economics. He knows all this. So do all of the business people out
there, and foreign investors, who take it to mean "out of control." The market continues
trending down, in its wild ride.

Money is another thing a free people ought never let the government control.

John

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