Inflation

[Narcotized]

---

Members do not see this ad.

Ben Bernanke: There is no inflation; endlessly printing money will not devalue currency and cause inflation.

http://finance.yahoo.com/news/World...html?x=0&sec=topStories&pos=main&asset=&ccode=

Food prices up 29% in ONE year.

What an absolute friggin *****.

 

[pgg]

Just to be devil's advocate here, but there are a number of non-inflationary reasons for global food price increases over the last year.

Americans still have by far the cheapest (as a % of income), most plentiful, highest quality food in the world, and that is not likely to change soon.

I'm not denying that hunger is a problem in the United States, but it's a different sort of problem than is faced by, say, 100s of milliions of peasants residing within the borders of our great nemesis and lender ... and it's not a currency problem.


Economic damage from fuel inflation is a bigger worry to me.

 

[Narcotized]

I agree there are multiple factors for food prices skyrocketing, but how can Bernanke say with a straight face that inflation is not a problem and we can just print endlessly without worry?

Inflation numbers withdraw food and energy from their calculations. If one spends all their money on food and energy (necessities), then there is little left over to spend on luxuries, and therefore little price pressure on luxuries. The irony is skyrocketing food and energy prices help keep other prices down. As an extreme example to illustrate this, you'd give away a new plasma TV for a few meals if you are starving.