The Fed & Food Inflation

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PP Mazzini's picture
PP Mazzini
Status: Member (Offline)
Joined: Jan 8 2011
Posts: 12
The Fed & Food Inflation

I think that we learned a lot about Bernanke today.  This article is particularly revealing:

http://blogs.wsj.com/economics/2011/02/03/bernanke-dont-blame-me-for-hig...

Basically, Dr. Bernanke is disavowing responsibility for any food based inflation.  The fact that wheat, corn and other grains have seen massive 50%+ increases in prices, roughly since he implemented QE2 is just a coincidence, I suppose?

I submit that Dr. Bernanke and the rest of the Board have literally taken leave of their senses.  They no longer believe what their eyes are telling them because their theories dictate otherwise.  After hearing from him today, I feel much more nervous.

PPM

 

SteveW's picture
SteveW
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 490
Re: The Fed & Food Inflation

I watched him respond to the question about food prices. His answer, paraphrasing, was that the weaker US dollar meant that the Egyptian pound was stronger and so the prices for food went up. You could clearly see from his demeanour that he knew he had pulled the rabbit from the hole that Alice originally discovered.

I continue to believe they know exactly what they are doing, their answers for public consumption come from wonderland or as Marc Faber says he is a liar.

http://www.zerohedge.com/article/marc-faber-calls-bernanke-liar-thinks-us-inflation-running-8-believes-pakistan-will-fall-nex

 

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