Ah, finally the mainstream press gets around to covering the dark side of Bernanke’s shameless pandering to his buddies on Wall Street — with a rate cut, Bernanke’s signaling that he’s willing to allow the U.S. to inflate its way out of debt. And that means that everything we buy from abroad — little things, like, say, oh I dunno … oil? — is going to be more expensive.
Americans tend to think of currency exchange rates only when they travel abroad. In today’s global economy, the implications of a weak dollar go much further than that, threatening potentially higher costs in the United States for everything from home heating to consumer goods to mortgages.
Bernanke may be a relative latecomer to the Worst … American … Leadership … Ever party, but he’s already made up for lost time.
BTW: what’s with the NYT’s schizophrenia on the rate cut? They’ve been falling all over themselves asking for some kind of relief for mortgage holders [hey jerkies — what about those of us who were prudent during the bubble?], and now they’re finally starting to understand why a rate cut is such a bad idea for our economy.