Bernanke is now talking about direct monetization of debt
Alex Stanczyk (December 2nd, 2008) Writes:
The road to hyperinflation is paved with good intentions.
Zimbabwe, here we come.
Bernanke Says Fed May Buy Treasuries to Aid Economy Bloomberg
By Scott Lanman and Vivien Lou Chen

Dec. 1 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke said he has “obviously limited” room to lower interest rates further and may use less conventional policies, such as buying Treasury securities, to revive the economy.
The U.S. economy “will probably remain weak for a time,” even if the credit crisis eases, Bernanke said today in a speech in Austin, Texas. While the Fed can’t push interest rates below zero, “the second arrow in the Federal Reserve’s quiver — the provision of liquidity — remains effective,” he said.
Bernanke’s comments pushed Treasury yields to record lows. Bernanke has created more than $2 trillion of emergency lending programs in the past year, using the Fed’s balance sheet and money-creation authority to cushion
...Alex Stanczyk, Arizona, Austin, Austin Chamber of Commerce;, Ben S, Ben S. Bernanke, bloomberg, Brian Sack;, Cambridge, central bank, China, Citigroup Inc, Congress, Department of Labor, Depression, Fannie Mae, Federal Deposit Insurance Corp, Federal Open Market Committee, Federal Reserve System, Freddie Mac, Gold Markets, government-chartered housing-finance;, Institute For Supply Management, Lehman Brothers Holdings Inc, Macroeconomic Advisers LLC;, Massachusetts, National Bureau of Economic Research, New York, Russia, Scott Lanman;, Tempe, Texas, United Kingdom, United States, USD, Vivien Lou Chen;, Washington, Zimbabwe


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