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Bernanke can't afford to EASE rates even if the U.S. economy falls off a cliff (great illustration by the way!). To ease would be to risk an acceleration in the USD free fall and a sharp (VERY SHARP) correction on U.S. financial markets (which would reverberate around the world). Bernanke knows that offshore investor confidence in USD denominated assets is VITAL. Otherwise the U.S. Government will not be able to fund its deficit. So he has to set monetary policy to suit OFFSHORE INVESTORS. The upshot: you guys might have a recession but that doesn't mean you won't see more RATE HIKES.

Christian Louboutin

Drowning man will catch at a straw.

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