Sunday, February 14, 2016

Fed is fighting US war vs China: report

Bernanke's real goal isn't to get US banks to lend more; it's to drive down the dollar so we import less from China and sell more abroad, says bank analyst Dick Bove

Fed is fighting US war vs China: report


Reviewing Federal Reserve chairman Ben Bernanke's speech in Frankfurt today, bank analyst Richard X. Bove (currently of Rochdale Securities LLC) concludes that critics who think Bernanke is trying to inflate the US economy miss the point.

"It is a currency war," Bove wrote in a report to clients today. He says Bernanke is working hard to force a weaker dollar that will change "the trade imbalance" and make US goods cheaper, which would boost demand for US products and create jobs here.

Bernanke spent much of his talk on "a long discussion explaining how China is manipulating its currency and why this creates distortions in the global economy which ultimately hurt everyone, including teh Chinese... Bernanke will continue his policy of pressuring the Chinese by lowering the value of the dollar... It is very dangerous policy because, before the Chinese adjust, the American economy could highly inflate." 

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About this blog

PhillyDeals posts interviews, drafts and updates that Joseph N. DiStefano writes alongside his Sunday and Monday columns and ongoing articles about Philadelphia-area business.

DiStefano studied economics, history and a little engineering at Penn. He taught writing and research at St. Joe’s. He has written for the Inquirer since 1989, except when he left a few times to work at Bloomberg and elsewhere. He wrote the book Comcasted, and raised six kids with his wife, who is a saint.

Reach Joseph N. at, 215.854.5194, @PhillyJoeD. Read his blog posts at and his Inquirer columns at Bloomberg posts his items at NH BLG_PHILLYDEAL.

Reach Joseph N. at or 215 854 5194.

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