By Amity Shlaes/Bloomberg – A little is all right. That’s the message Federal Reserve Chairman Ben S. Bernanke has been giving out recently when asked about the evidence of inflation in the U.S. recovery.
Sometimes Bernanke doesn’t even go that far. He simply says he doesn’t see inflation. The Fed chairman recently described the prospects for price increases across the board as “subdued.”
“Sudden” is more like it. The thing about inflation is that it comes out of nowhere and hits you. Monetary policy is like sailing. You’re gliding along, passing the peninsula, and you come about. Nothing. Then the wind fills the sail so fast it knocks you into the sea. Right now, the U.S. is a sailboat that has just made open water, and has already come about. That wind is coming. The sailor just doesn’t know it.
CKA- So there you have it, the Federal Reserve Chairman, Ben Bernanke says he sees little inflation! Can you say CLUELESS? Just in case you were wondering, the highest gas prices, the high cost of food, clothing, insurance premiums and pretty much everything is just a figment of your imagination. It’s not real, Bernanke told you so. So go back to your lives, there is nothing to see here!!!
Of course Bernanke thinks we are stupid and forgets that just last month he appeared before congress to tell them “There is a massive economic cliff in our future”! He either has a serious case of dementia or he is a really big liar (or both). I’ll let you decide.