Ben Bernanke has done gone and went insane

Karl Denninger – Open Letter To The Chinese Premier:

Dear Wen Jaibao:

We in America have noted with concern your nations’ expression of alarm at our Federal Reserve’s blatant money-printing, debt monetization, and interference in the free markets, in particular the recent commentary of China’s bank regulator cited here:

“The continuous depreciation in the dollar, and the U.S. government’s indication, that in order to resume growth and maintain public confidence, it basically won’t raise interest rates for the coming 12 to 18 months, has led to massive dollar arbitrage speculation,” he told reporters in Beijing today at the International Finance Forum.

Liu said this has “seriously affected global asset prices, fuelled speculation in stock and property markets, and created new, real and insurmountable risks to the recovery of the global economy, especially emerging-market economies.”

Mr. Liu is correct, of course.  However, yesterday afternoon Ben Bernanke gave you the finger, first in his speech and then later in the Q&A in which he said:

Nov. 16 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke said it’s “not obvious” that asset prices in the U.S. are out of line with underlying values after a 64 percent jump in the Standard & Poor’s 500 Index from its March low.

Donald Kohn, another Fed Governor, erected his middle finger in your direction as well with his comments last night and Yellen added her view this morning in which they also both said “we see no bubble.”  That’s three.

How many more times do you need to be flipped off before you get it: The Fed isn’t going to do what you want, and neither is Obama.  Get over yourself.

On the objective measures the price/earnings multiple of the S&P 500 currently stands at over 130, more than double its previous record and vastly beyond anything achieved even in China’s manipulated and overheated markets.  In short, they’re lying and they don’t care.