Tuesday, July 11, 2006

Chief Banker Gossip Rag

Chief bankers around the world seem to be nearly as popular as Brangelina right now. When I say "nearly", I mean tiny tiny fraction, which is much bigger than it used to be.

In the US, Bernanke is talking about continuing raising interest rates to fight inflation. He was going to level them off, but he has now seen evidence that energy prices are being passed on to the consumer. So a bag of apples from South Africa costs a little more than it used to. Back in April, he said this could have dire consequences.

In Canada, David Dodge is hoping the dire consequences down there are significant enough that it lowers our inflation without having to raise our interest rates again. We're so nice.

In Japan, interest rates might finally go above zero. Yes, zero.

And just in case any of those bankers are worried about their retirements, Greenspan is proving that a speaker circuit does exist for their kind of fiery rhetoric. In a recent speech in Colorado, he spoke about his concerns on energy supply and how it's dwindling, and said openly that he supported the war in Iraq to secure oil for the US. Now I know that the Federal Reserve Chairman is supposed to be somewhat isolated from day to day politics, but if anyone would get to talk to Greenspan, you'd think it might be the President. (Remember just after GWB got elected the first time, Greenspan made a speech supporting the Republican income tax cut? That was the same income tax cut he denounced as being bad for the economy just months earlier.)

This isn't the first time oil has played the key role in historical events. Check out this Robert Newman video for a history lesson all of us can follow.

Darren J 7/11/2006 10:57:00 p.m.


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