Dumb statement of the week
Dr. Bernanke unfortunately does not understand economics, he does not understand currencies, he does not understand finance,” (Jim) Rogers, 68, said in a lecture at Oxford University’s Balliol College yesterday
From here.
Look, the guy can disagree with Federal Reserve policy – it would be nice if he actually explained why – but even if he doesn’t he can. But saying that one of the worlds top economists doesn’t understand economics really just shows that he doesn’t understand the discipline of economics.
Hey, he can disagree with the discipline of economics – but without understanding it how can he say that someone else doesn’t?
And when he says “debasing your currency” he shows his true colours – he doesn’t understand monetary policy or inflation targeting. There is no “magic” value for money, it isn’t some god given level of what it should be. The whole point of “printing money” at the moment is because inflation is below their target, their mandate is to hit a certain level of inflation, and by default they need to increase how stimulatory policy is to do that – if QE2 appears to be the wrong way of doing this, or will lead to unintended consequences, then criticise it on those grounds FFS.
As an investor I’m sure he understands investing – but this sort of attack on Bernanke indicates that he might not have the same level of mastery in economics. Ben Bernanke might not be as good at investing – but he is one guy I’d sure listen to when it comes to economics.