Bernanke's Testimony
For those of you who weren't watching yesterday, here is Bernanke's testimony.
To sum it up, he's not worried about inflation even as the dollar probes new lows and oil and gold probe new highs as he gives his speech. He's in an "inflate at almost all costs" to get the economy moving. Anyone holding US dollars is being taken for a ride and many aren't even aware of it.
This is one of my favorite parts of the speech:
Any tendency of inflation expectations to become unmoored or for the Fed's inflation-fighting credibility to be eroded could greatly complicate the task of sustaining price stability and could reduce the flexibility of the FOMC to counter shortfalls in growth in the future. Accordingly, in the months ahead, the Federal Reserve will continue to monitor closely inflation and inflation expectations.
The federal reserve's monitoring of inflation is curious. I wonder just how bad it would have to get for them to actually raise rates? They've been "closely monitoring inflation" all the while as it skyrockets higher, and yet they continue to cut rates. Where do they draw the line? Or are they just feeding us a line?
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