Bernankesaid on Thursdaythat the Fed had the apparatus and the ability to recover the cash and loans to the financial system over the past year, signalling that it had its exit strategy worked out. BUT the Fed balance sheet and money supply hasn't grown since the first quarter of '09.
So, Bernanke is likely blowing smoke here for the financially clueless who have never read the M2 data repoted weekly in the Fed's H.6 report. Take a look for yourself,right here. I am not making this up. Although I prefer to look at M2 not seasonally adjusted, M2 seasonally adjusted pretty much givies the same picture--and that's what Bernanke would be looking at right now. M2 seasonally adjusted over the last three months (through September 28) has declined(!!!) by 0.4%. Over the last six months it has grown at only 1.1%.
(GOES ON TO DISCUSS GOLD)
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