While Ben and his central bank friends around the world are bemoaning the lack of inflation, they all have one answer to everything that ails the world: Print more money !
We have a recession or depression: Print more money.
We have too many unemployed : Print more money.
When commodity prices rise to new record levels, like right now, they are not important.
If the official US inflation rate would be calculated like it was during Jimmy Carters time as president, it likely would be closer to 10% than 1%.
I fear that there is a good chance that in the not too distant future the paper currencies of the world will be abandoned as worthless.
It now is clear that Alan Greenspan didn't know what he was doing and it is becoming increasingly obvious that Ben isn't any wiser.
Just today, March 1st, and tomorrow he will deliver testimony on Capitol Hill and will go in great length into his "exit strategy" from the "extraordinary measures" of monetary easing he has engaged in.
There is no such thing. If he's unable to grasp reality today, it is a good assumption that by the time reality hits him like a ton of bricks, it will be too late to turn the ship around.
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