Bernanke doesn’t have a clue. He’s making it up as he goes along.
Actually, he does. He and DC pols know darn well their 'official' statistics are meant solely to hoodwink the populace.
I think Bernanke is doing his level best at looking at things from the inside and resisting the urge to commit suicide.
He knows the math doesn’t add up, and now with Europe going backdoor QE3 that inflation is going to get even worse.
What’s telling is looking at the Oil to Gold ratio. Since the 1940’s, an ounce of gold has been able to purchase, on average, about 16 barrels of oil. Divide the current price of a barrel of oil into the spot price of gold, and you come to find out the oil companies have done a pretty good job keeping a lid on prices, despite all of the regulatory costs imposed on them by all of the various governments.
Today’s spot oil: 108.07
Today’s spot gold: 1717
1717/108 = 15.89 barrels/ounce gold.
This the same as what it was when all oil was purchased by gold.
When people freak out about the rising cost of a barrel of oil, they blame the oil company.
They ought to be blaming Treasury and the Federal Reserve.