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Bernanke should not waste Tax Payers Money and define FED’s Lending Policy – Jan 15

January 15, 2013

GMT 3:59 – Euro @ 1.3370 = I think Bernanke needs to explain more in detail that why world should not worry that money printing is trillions will not create inflation. In his speech he was in disagreement with his colleagues that FED’s aggressive buying of bond will lead to higher inflation.

Someone should ask Bernaanke that how is over a decade long monetary easing policy helping the economy. During all these years the job situation has deteriorated and has been wobbly, which means economy never picked up in real sense so how can he be so sure that continuation of such one-sided policy will benefit and how many more years will be required to mend the economy.
He also needs to explain the real beneficiary of over couple of trillions of US Dollar, as economy is surely the looser. His four-year long zero interest rate policy may have helped to cap unemployment rate or may have helped to avoid global financial collapse, but FED never explained or gave a reversal plan or how to adjust the creation of excess money.
Of course without revenue generation in excess of what is being created, this issues will never be settled and therefore, more debt will have to be created, which means more adjustment of book entries will be required and the current pattern or trend will continue until another formula is invented.  
Hence, Bernanke could be right that financial gurus may be close to inventing a new formula that can be met without revenue increase. So I agree with him that the worst thing for Central Bank to do would be to raise interest rates prematurely, because he knows that hike rates would mean.
Mr.Bernanke, please ensure that printing in trillions goes into the right pocket as this money is not meant to speculate in OIL, GOLD or DERIVATIVES, which does not create jobs. You need to make sure that this money helps in creating new businesses. FED should have a defined policy that what portion of its money injection should go for bank capitalization or ailing corporation/industries and how much should be injected for economy’s stimulation.
However, we could be heading for a choppy day, as barrage of economic data will be released in next 15-hours  for Europe to USA.
EURO @ 1.3370 = We could witness continuation Monday’s trend, as Euro has support around 1.3330-35 and unless 1.3280 surrenders, see risk for a break 1.3420 for 1.3475. Buying on dips preferred, as bias is on upside 
GMT  4:29 – AUD @ 1.0541 = likley to hold 1.0510-20 for test of 1.0580-90 zones or esle 1.0390 before up.
GMT 4:23 –  JPY @ 88.92 = Likley to hold around 88.70-80 for re-test of 89.40-50 zones or esle 88.30-40 before up.
GMT 4:20 – GBP @ 1.6070 = Should hold around 1.6025-35 for 1.6125. Apply STOPs if 1.5980 break
GMT 4:17 – GOLD @ $ 1670.15 = Bias on upside for $ 1678-80 if $ 1665 does not surrender. I will not be surprised to see a test of $ 1684 or else $ 1655
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