Bernanke: Job Growth and Inflation Too Low

Bernanke said inflation remains quite low in the United States, a tough message to deliver amid headlines of rising food and commodity costs across the globe.

He also said expectations of future inflation had remained "stable," suggesting little worry a inflationary psychology was building despite rising gasoline costs.

"Inflation is expected to persist below the levels that Federal Reserve policymakers have judged to be consistent" with their mandate, Bernanke repeated.

http://www.reuters.com/article/2011/...7183J220110209

Well done Lloyd. A little taste and a link. The overlords will be happy lol.

Two articles today on the dollar losing it's coveted position.

http://money.cnn.com/2011/02/10/mark...le+Feedfetcher

http://www.nytimes.com/2011/02/11/bu...er=rss&emc=rss

I hope Big Ben (ha ha) has a plan.

Thanks. )

Paul Krugman
"Start with that bit (from Rep. Paul Ryan) about debasing our currency. Where did that come from? The dollar’s value in terms of other major currencies is about the same now as it was three years ago. And as Mr. Bernanke pointed out, consumer prices rose only 1.2 percent in 2010, an inflation rate that, for the record, is well below the rate under the sainted Ronald Reagan. The Fed’s preferred measure, which excludes volatile food and energy prices, was up only 0.7 percent, well below the target of around 2 percent.

But Mr. Ryan is sure that the dollar is being debased and won’t take no for an answer. In an attempt to create a gotcha moment, he waved a copy of a newspaper bearing the headline “Inflation Worries Spread” at the Fed chairman. But the gotcha actually went the other way. As Mr. Bernanke immediately pointed out, the article was about inflation in China and other emerging markets, not in the United States. And the Fed chairman declared, correctly, that “inflation made here in the U.S. is very, very low.”

Advantage Bernanke. But the facts don’t matter, because conservative hard-money mania, the demand that the Fed stop trying to rescue the economy, isn’t really about inflation fears.

Mr. Ryan said as much in Wednesday’s hearing, in which he declared that our currency “should be guided by the rule of law, not the rule of men.” A few years ago, my response would have been, say what? After all, even Milton Friedman saw the conduct of monetary policy as a technical issue, not a matter of principle; his complaint about the Fed’s role in the Great Depression was that it didn’t print enough money, not that it printed too much.

But then Friedman, who believed that it sometimes makes sense to let your currency depreciate, who urged Japan’s central bank to adopt a policy very similar to what the Fed is doing now, was a leftist by the standards of today’s G.O.P.

Wednesday’s hearings aren’t likely to have any immediate effect on monetary policy. But they offer a revealing — and appalling — look at the mind-set of one of our two major political parties. We’ve always known that the modern G.O.P. wants to take America back to the way it was before the New Deal; but now it’s clear that the party wants to build a bridge to the 19th century, and maybe even to the antebellum era. Backward, march!"