The Federal Reserve Is in a Pickle
Some call it pushing a rope. But, nonetheless, here's Fed Chairman Ben Bernanke's strategy for stimulating the economy: Keep interest rates low, keep printing money and pray for inflation.
Why? The concept—and the hope—is simple. Inflation will raise asset prices and, with it, consumer confidence that inspires more consumer spending—the kind that will force businesses to invest and hire.
And there you have it. The economic engine is finally humming along again.
But the long lingering recession has given consumers a taste of the liberation that comes from paying down debt. Will they go along with Bernanke's plan?
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In his weekly video brief, Big Joe discusses:
• Buying higher asset prices
• Commodities and inflation
• Unstoppable gold
• The Euro mess
This month's Elements inFocus looks at how:
• Inflation steals principle value
• Retirement is more about income than net worth
• Budgeting for low rates works
• Liquidity rules
• Why the Fed has to print
• Why printing $ costs more than
ink and paper
• Have you supported your Fed lately?
• The Fed has kin across the pond
Every week, Big Joe's program drills more deeply into the topics outlined in the other media channels. Listen live or catch up with podcasts!