Bernanke's 'QE3' talk sends dollar into a tailspin
Just what we need here in America! More fake money being shoveled into an economy already bursting with fake money.
Ben Bernanke proves the million monkey theory of management: You could get a million monkeys to run the Fed but only Bernanke could screw things up this badly.
"Three months ago all the focus was on the exit from unconventional policy; now Bernanke mentions the conditional possibility of QE3," said Paul Meggyesi at JPMorgan. "This is unambiguously bad for the dollar and good for risk."
Investors seemed to agree, sending commodities and gold higher and lifting growth-leveraged currencies like the Australian dollar.
The U.S. dollar slid to a fresh record low against the Swiss franc around 0.8089 francs, while the euro leaped to $1.4253 having been as low as $1.3984. The dollar also deflated to 78.83 yen with only talk of semi-official bids preventing a break of major support around 78.40/50.
Against a basket of currencies, the dollar was down at 74.773 .DXY, having tumbled for a high of 76.053.
I'd like to say something profound but why bother? Bernanke will continue "easing" our way into a hyperinflationary event - or some other catastrophe - because he lives the definition of crazy; do the same thing over and over even if it isn't working.