Posted on 02/28/2013 6:55:36 AM PST by SeekAndFind
In an exchange with Bob Corker on Tuesday in which the Senator called Ben Bernanke an inflation dove, the Chairman of the Federal Reserve responded that "my inflation record is the best of any Federal Reserve chairman in the postwar period." For the readers who presume this article to be satire, the link here will prove otherwise. Bernanke, the walking, tripping, living definition of systemic risk now views himself as a top level inflation fighter in addition to being the world's foremost Great Depression expert, bank savior, and so many other things. And it's President Obama who has the huge ego?
What's comical here, and to be fair, it's easy to misspeak when under the spotlight, is that by his very own economic illogic Bernanke implicitly acknowledged that in addition to having the best inflation record since WWII, he's also overseen the worst economic performance of any Fed Chairman since 1945. It should also be said that Bernanke implicitly acknowledged Tuesday the utter failure of his quantitative easing program. More on both later.
First, Bernanke's inflation assertion needs to be addressed. The Chairman says he has the best inflation record since the 2nd World War. Fair enough, but since he can say that, I'm now going to officially proclaim North Korea's Kim Jong-un the tallest person in the world at 10 feet, 10 inches. The latter was easy to do as I simply shrunk the inch to half of its former length. While Kim used to be 65 inches, he's now 130 inches long and over 10 feet tall. Alert the Guinness Book of World Records.
Back to reality, however I redefine the inch and foot in order to put Kim in the record books, no one is fooled. To see North Korea's "dear leader" is to see someone who stands roughly 65 inches in length. Bernanke's howler about his record on inflation is as credible as Kim claiming that when he stands, he looks down on a regulation basketball rim.
Inflation is all in how you measure it. As John Williams' Shadow Stats reveals, if we measured inflation the way we did as recently as the early ‘90s, it would be running at 6% presently. Surely the CPI would be even higher today if we not only included inputs like gasoline and food, but increased their weighting in consideration of how much gasoline alone eats up the budget of the average earner.
Gold, the most objective measure of money in existence, could be had for roughly 1/480th of an ounce when Bernanke was nominated to run the Fed, but now a dollar only buys 1/1600th. Oil was around $50 barrel, yet today is $93. Thanks to a very generous measuring process for inflation that resembles mine for length whereby Kim Jong-un dwarfs Yao Ming, Bernanke has a "great" inflation record. But no sentient being is fooled anymore than readers would believe that Kim is almost two Nate Robinsons.
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Bernacke is printing money fully knowing that while it may prop up his political masters for a while, it will ultimately ruin the economy. His is the worst individual ever to be appointed to high office in American history.
Or, dumBO is a Constitutional scholar.
Growth for the last six months has been a wash. Uncle Ben has printed enough money to float the government. The mystery is why the dollar has not dropped more than it has. The first step is to remove government from GDP to reflect the real drag government is on the economy.
RE: Growth for the last six months has been a wash. Uncle Ben has printed enough money to float the government.
Ha ha ha, Tell that to the Nobel Prize winner in economics, Paul Krugman. He argues that the government has not stimulated enough.
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