Friday, February 11, 2011

Is Bernanke to blame for the price inflation?

I wouldn't want to attack Mr Ben Bernanke personally for I believe that he is a well respectable fellow with good values and good intentions for his country. But unfortunately, the man is just clueless about economics and that is the sad fact that very few are willing to acknowledge. Ben Bernanke is a quack whose gymnastic are taught in school are practiced by doctors as cure for the sicks and the invalid. The entire institution of the Federal reserve and central banking as a matter is destructive for its serves the interest of the State while depriving the savers from their hard earned money.
Of course the Federal reserve is to be blamed for the current spike in inflation! Money is a commodity, a good, and when the law of supply and demand tells us that when you increase the quantity of a good A its price goes down! By inflating the money supply via stimuli and QEs, Mr Bernanke has managed to debased the price of the dollar, making goods more expensive for dollar priced commodities around the world. Since the dollar is the world's reserve currency, it makes sense to pinpoint the recent surge in " food riots" on the back of the policies of Fed Chairman Ben.
That's the bottom line and trying to deflect the cause of inflation on the weather or steep demands from Asia is absolutely ridiculous. Asians are buying a lot of cars and computers these days; but the prices of those goods have risen far less than the price sensitive agriculture and energy commodities like oil, gold, silver, wheat or cotton. Yes we should blame Mr Bernanke; even more, we should abolish the institution central banking and return to a classical gold standard.

No comments: