The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.NEW YORK ( Bullion Bulls Canada) -- For three years, we have had to listen to Ben Bernanke drone on and on about the mythical "U.S. economic recovery." I recently pointed out with an
All that Japan has accomplished with nearly two decades of near-zero interest rates is to prove beyond a shadow of a doubt (in hindsight) that its economy has been dead for all these years. Similarly, all that Bernanke has proven with his three-plus years of near-zero interest rates is that the U.S. economy is
already dead. We don't need two decades of near-zero interest rates to prove the U.S. is an economic corpse. Defibrillating an economy with near-zero interest rates for three-plus years (and getting no response) is proof of death just like defibrillating a body incessantly for three years would prove it's a corpse. For the deluded apologists who claim there hasn't been enough time for the U.S. to pump up all of its asset bubbles yet again, there is an inevitable precursor for interest-rate induced asset bubbles: ultra-high inflation. If the U.S. economy were not already deceased, then three-plus years of 0% interest rates would have already led to out-of-control inflation. Yet we have Bernanke insisting that U.S. inflation is extremely low -- despite the $trillions of new paper he has been relentlessly injecting into it for nearly four years. Even John Williams of Shadowstats.com who engages in honest calculations of U.S. inflation insists that U.S. inflation is still only "high" (just over 10%), but nowhere near the "hyperinflationary depression" he originally predicted for the U.S. going as far back as 2003. Then there is the U.S. Treasuries market. What do the "highest prices in history" for U.S. bonds indicate from an economic fundamentals standpoint? That the U.S. economy is in the midst of its worst depression. There is absolutely no possible way to rationalize the highest prices in history for U.S. bonds and a "growing economy" -- especially with the U.S. dumping the greatest supply of Treasuries in history onto the market. Maximum supply and a growing economy directly imply low Treasuries prices, not the highest prices in history. However, it would be unfair to single out Bernanke for all of this criticism. There is also plenty to criticize about Canada's central bank stooge: Mark Carney -- yet another Goldman Sachs alumnus. Yesterday, the Bank of Canada again left Canada's interest rate frozen at its own near-zero level.
What was Carney
saying today? He was gushing about the "strengthening" global economy, and thus the Bank of Canada elevated its projections for global economic growth for 2012. Where was the interest rate increase, Mark? Canadians with functioning memories know that Carney has been lecturing Canadians incessantly for the past two years about their "overspending." As noted above, Carney's interest rates are 100% responsible for that behavior -- as (like most people) Canadians demonstrate an aversion to rape. Meanwhile, real estate bubbles across most large Canadian cities swell ever larger, and teeter ever more ominously. Carney's near-zero interest rates are 100% responsible for that as well. In short, if Mark Carney believed in the strengthening global economy, then he would have raised interest rates yesterday, and indicated that many more increases were on the way. That would halt the "overspending" of Canadians, rather than causing it. It would halt the growth of real estate bubbles across Canada, rather than causing them. Just as with Bernanke, we see Carney's actions always and absolutely contradicting his own words. When people say one thing but do another, we call them hypocrites. When people intentionally say one thing but do the opposite, they are simply liars.