Desperate times call for desperate measures, says the Fed chairman. But what will be the unintended consequences?
By Robert Morley – The Trumpet.com
Federal Reserve Chairman Ben Bernanke’s speech in Frankfurt may be one of the most important and underreported events since America abandoned the gold standard. In it, he said the dollar standard was flawed and that America’s trade deficit was imperiling America.
“[I]t would be desirable for the global community, over time, to devise [a new] international monetary system,” he said.
Never before has a Fed chairman made such an admission. Never before has one ever disparaged his own currency in such a way.
The speech was a radical departure from the status quo and a major signal for a looming policy change. It means that trade war is virtually guaranteed and the dollar will soon be devalued. Dramatic global economic upheaval is on the way.