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[Most Recent Quotes from www.kitco.com]

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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

Bernanke

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

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