by Mish

Of course Bernanke ignored a housing boom and bust. He also ignored a a dotcom boon and bust, a global financial crisis, numerous bank bailouts, and a policy of “too big to fail” that is now “even bigger”.

Fed Inflation

A Bloomberg video exposes Bernanke as nothing but a charlatan. Please consider Hockey Stick Inflation.

Inflation Targeting at 2% Per Year

Bernanke brags about a 2% inflation rate as if it is something to brag about. It’s not. This is what it looks like over time.

Hockey Stick Inflation

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Real Disposable Personal Income Per Capita

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See the Problem?

Hopefully so, because it’s obvious. The moment (for any reason) wages stop rising at the rate of inflation, the system is in stress. Why might wages stop rising? Global wage arbitrage is certainly one reason.

Even if that did not happen, income skew comes into play. Wages of the top 10% rise far faster than the wages of everyone else. As proof, I present Top 1% Received 121% of Income Gains During the Recovery, Bottom 99% Lose .4%; How, Why, Solutions

Also consider “Too Big To Fail” and other inept government policies as noted in Obama’s Infrastructure Mania; Why It’s Not Justifiable (And What To Do About It)

The Source of Inflation

If you are looking for “THE” source of inflation, look no further than the Fed, fractional reserve lending, and government policies that benefit those with first access to money (namely the banks and the already wealthy).

Bernanke has the gall to brag about his 2% inflation fighting “achievement”, ignoring numerous boom-bust cycles, bank bailouts, and income skew.

The ultimate irony is the Fed and its inflationary policies is the primary reason inflation exists at all.

Mike “Mish” Shedlock

Lacy Hunt on the Unintended Consequences of Federal Reserve Policies

The Financial Repression Authority interviewed Lacy Hunt, Chief Economist at Hoisington Management on Fed policies.

Barry Ritholtz Asks “Why Has Inflation Remained Low for So Long?” Mish Asks “Is Inflation Low?”

Barry Ritholtz at the Big Picture Blog asks “Why Has Inflation Remained Low for So Long?”

Make Inflation Great Again! Is Trump the “Inflation President”? Spotlight on Bonds, Oil, Gold

A near-universal consensus has formed that Donald Trump is the “inflation president”.

Oh that “Elusive” Inflation!

New York Fed President, William Dudley, says 2% inflation target will remain elusive even if price pressures pick up.

Absurd Inflation Discussion by Fed Jackasses

Minutes of the July 25-26 FOMC Meeting show internal concern over the Fed’s inability to hit 2% inflation.

Rethinking the Fed's 2% Inflation Target: Spotlight On an Absurd Debate

Is the Fed's 2% inflation target too high or too low? That's the big debate now amongst central bankers.

Fraudulent Guarantees; Fictional Reserve Lending; Comparison of US to Cyprus

Reader “MB” who lives in New Zealand is concerned about confiscation of deposits. He writes …

“Bad Options” Regarding 2% Inflation Targets (And Other Silly Notions)

The Wall Street Journal and Bloomberg both posted ridiculous articles regarding today regarding inflation. The former was on “bad options” the latter on “inflation expectations”.