What follows seems locked 3 years in the distant past, and though Ms.Yellen has replaced Mr. Bernanke so long ago that I almost forgot he ever existed, the money facts and the federal reserve chief’s cautious patter that I noted in July 2013 have hardly changed.
A bit of history:
September 26, 2013
One day last week as Mr. Barnanke, chairman of the U.S. Federal Reserve, announced that the tapering of government bond buying would not begin until employment improved precisely what he’s been saying about increasing interest rates for as long as I can remember. The effects of his recent September words seemed about the same as his similar words last July: people bought gold and bonds, and interest rates declined.
July 12, 2013
Yesterday when I got home I was surprised to see the price of gold up more than 32 dollars. Because of its price having been declining so much in the past several weeks I’d noticed many TV investment advisers saying hardly any big investors would buy it any more. But someone bought it yesterday. And what’s even more amazing is that US. markets were at record highs, and bond yields were dropping. Well I learned why these unexpected investment numbers had appeared in the US yesterday and it was because Fed Chief Bernanke had clarified his stated interest rate intentions of a couple of weeks ago. He “reiterated” as they say what I’d been hearing him say for at least a year which is he would not stop the US. government buying its own bonds to keep bond yields and interest rates low until job growth improves at least 1 percent. So for now stock markets are at record highs while employment has been stubbornly low since 2008, and some of the employment increases since 2008 have been the minimum wage pay card, part-time employment.
Still no one talks seriously about capital and employment being sent to offshore job making manufacturers in communist China, capitalist Taiwan and South Korea, and Vietnam, and Thailand and Bangladesh, and Indonesia, and Mexico, and wherever else labour may be cheaper than in America, Europe or Japan, they just keep making investing cheaper so that making money from money will bring full-time manufacturing jobs back to America and Europe or even to Japan again.