Inflation Is Too Low? Are You Kidding Us, Bernanke?
Michael T. Snyder | Jul 12, 2013 06:51AM ET
Federal Reserve Chairman Ben Bernanke said this week that inflation in the United States needs to be higher. Yes, he actually said that. On Wednesday, Bernanke told the press that "both sides of our mandate are saying 53 percent of all American workers make less than $30,000 a year.
Most families are just barely scraping by from month to month, and Bernanke has the gall to say that he needs to try to get prices to rise even faster.
Is Bernanke also going to increase all of our paychecks in order to make up for the "inflation tax" that is being imposed on all of us?
Of course not.
And sadly, it appears that the number of Americans that are losing their jobs is starting to move upward again. We just learned that initial claims for unemployment benefits rose to 360,000 last week.
That is getting dangerously close to the 400,000 number that I keep talking about.
The middle class in the United States is shrinking with each passing day, and Bernanke seems absolutely clueless.
His answer to every economic problem always seems to involve printing more money. Thankfully, about 1.8 trillion dollars of that money is being stashed away at the Fed and has not gotten out into the real economy yet.
But someday that money will be unleashed on the real economy, and it will create crippling inflation.
Unfortunately, Bernanke doesn't seem to really be too concerned about the mountains of cash that the big banks have parked at the Fed. He is just happy that his reckless money printing has pumped up the stock market to new all-time highs.
He should enjoy this little period of euphoria while he can, because this bubble will burst like all false financial bubbles eventually do.
And when this bubble bursts, the foolishness of Bernanke and the Federal Reserve will be glaringly apparent to everyone.
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