During the last FOMC conference on January 25th, we highlighted Chairman Bernanke's comments about how the inflation rate only hurts one if they "do their life savings in a mattress"
Today, Congressman Dr. Ron Paul questioned Chairman Bernanke on this comment:
4:50- "In January at one of your press conferences you said that, you sort of poked a little bit of fun at people to downplay the 2 % inflation rate. But if you say it's 2, I say its 9, lets compromise for the sake of argument its 5%. You said that it doesn't hurt you unless you're one of those people who stick their money in a mattress, but where are you going to put it? Are you going to put it in a CD and not make any money at all?"
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Since the January 25th FOMC, the US Dollar has fallen 1.7% from a close of 79455 to lows of 78120 today. The US dollar was heavily defended today as it came back down to where it originally broke out last November at it's 7800 neckline level. This breakout was what led to the inverted head/shoulders to complete its target up to 8100 as the market squeezed shorts. Currently back at testing this major support, the market fights to hold its October lows which are now being targeted.
