EconoMeter: Is Bernanke all wrong?
A hedge fund manager criticizes Fed chairman -- and panel responds
Roger Showley, U-T SAN DIEGO
Sunday, May 26, 2013
Kelly Cunningham, National University System
The Fed’s attempts to sustain the economy with artificially low interest rates and quantitative easing prevents necessary restructuring and real sustainable recovery. Continuing cheap monetary policies in an attempt to stimulate borrowing and consumer spending postpones the even greater inevitable correction. The gambit of continually printing money leads to the U.S. dollar value collapsing. When interest rates eventually spike, the Fed’s bond bubble will burst, and interest and unemployment rates will soar with borrowers defaulting and housing prices collapsing again. This time, when budget deficits swell there is no one, including the federal government, able to provide another round of bailouts.