- Bernanke promises "unconventional" methods to combat deflation. (read Jackson Hole speech)
- "He (Bernanke) already purchased longer dated Treasuries and he's already purchased mortgage-backed securities, I can only assume he's ready to buy stocks and real estate...." (increase Fed Balance sheet)
- "Monetary base has gone from $800 billion to just under $2 trillion...."
- "(Gold) is absolutely, 100%, an inflation hedge"
- "We've had decades of a massive increase in the money supply, a massive increase in lending and a massive increase in asset price inflation (Nasdaq stocks, real estate prices). When that ends the natural occurrence for healing would be for a deflationary depression"
- Money supply has to shrink, consumers have to deleverage (pay down debt/sell off assets)
- "You might get a nominal increase in the major averages, you might stop the hemorrhaging that's in the housing market, but at what cost?"
- "When you increase the supply of currency it is never EVER evenly distributed"
Hear the full interview at King World News