Goldman (NYSE:GS) Supports Bernanke Debacle as World Opposes it

Anyone who understands the cause-and-effect of printing money, or as Fed chairman Ben Bernanke now likes to label it: quantitative easing, knows the consequences of inflation, debasing the dollar and creating unsustainable debt levels. For some reason Goldman Sachs (NYSE:GS) has come out in support of Bernanke in this matter. Figures.

Even though Bernanke admits the debt in the U.S. is indeed unsustainable, he continues to create it through printing his money. As commodity investor Jim Rogers has stated a lot: he doesn't know how to do anything else.

Major economies like China, Germany and Brazil have been highly critical of the decision.

Goldman chief economist Jan Hatzius said in a note to clients, "The move will spur gross domestic product growth and reduce the risk of deflation.

“The widespread hostility to the Fed’s actions is misplaced,” Hatzius wrote. “Downside risks to the economic outlook have declined significantly. U.S. inflation is unlikely to become a problem for years.”

Of course it's simplistic to imply the only concern is inflation, as there are many other concerns, including the fact it didn't work before, and is playing havoc with the economic recovery in emerging economies in relationship to their currencies.

Hopefully Ron Paul and a few of his new allies in Washington will work hard to help people understand the disaster the Federal Reserve is, and successfully force an audit upon the central bank.

For gold investors, it's just another good reason to remain faithful to the yellow metal, as it's going to continue to go higher because of the poisonous monetary policy of Bernanke and the Fed.