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December 7, 2010

The World Is Being Run By Crazy People

When Pelley asked Bernanke what degree of confidence he had in his ability to control inflation, the Fed chairman responded, "one hundred percent."
Posted by Kate at December 7, 2010 12:05 AM
Comments

This could be the birth of a new heading, "You know when the government is full of sh!+, when...".

In these times when so many people are looking for an upside, it takes great arrogance to spew a statement like that.

Posted by: Knacker at December 7, 2010 1:35 AM

He's correct. When the US Fed starts printing more money for more failed stimulus and secret backroom bailouts inflation will occur which is to be expected. He's 100% sure because this is exactly what is going to happen and he knows he will cause it.

Posted by: Maple Leaf Party at December 7, 2010 1:40 AM

Even if wheelbarrows replace wallets once again, "Helicopter Ben" will still be able to keep "official" inflation below 2%. How? By keeping Al Capone's tax accountants as guardians of the statistics. See www.shadowstats.com/
Statistics Canada does all the same fudging as well.

Posted by: Bill at December 7, 2010 2:06 AM

Maybe he meant 100% interest rates will be needed to kill the inflation Obama and he will be unleashing?

Posted by: andycanuck at December 7, 2010 2:22 AM

Hey, I am certifiably crazy.
Can I run the world for a while?

Posted by: foobert at December 7, 2010 2:30 AM

I was reading a BMO statement on inflation and they suggest that inflation will only rise if the consumer is willing to borrow and spend again. Which is I dunno people are dumb so that's up in the air. If that happens then all the fed has to do is raise rates. Of course that's bad for the federal balance books but maybe higher interest rates will make them rein in spending. So far that money is not going anywhere.

Posted by: M at December 7, 2010 3:16 AM

Crackheads, the lot of them.
[d]

Posted by: dwright at December 7, 2010 3:28 AM

ROFL@Bernake. Then again, they are ruthless.

Posted by: Mark Peters at December 7, 2010 6:40 AM

What the Mama says . . . .


"An Unmitigated Disaster

We're toast, folks. Bernanke is doubling down, and the base inflation rate (low-to-mod income) is shooting through the roof."


http://maxedoutmama.blogspot.com/

Posted by: Fred at December 7, 2010 7:30 AM

The correct term here is amerigance. That people, is the idea that if America's doing it - it is the right way and the only way. In short, their economy is doomed and has been for nearly 20 years. It's truly sad.

More worrisome, that whack job in North Korea may provide an excuse to distract people from the problems at home.

Posted by: the bear at December 7, 2010 7:59 AM

As Maple Lef Party suggests, read his words caefully. He said he was 100% certain he could control inflation - he is doing everything to create it, which is his intent, and he will eventually succeed ... despite those other pesky branches of government thta keep on frigging the inflation number to make it appear low.

Posted by: Robert of Ottawa at December 7, 2010 8:26 AM

Sounds eriely like 'One hundred percent not guilty your Honour'

Posted by: jckirlan at December 7, 2010 8:30 AM

It's easy to control the numbers, when you control what they contain. If they were to include food, clothing, or energy in the equation, the numbers would already be showing the start of hyperinflation.

Posted by: ABF at December 7, 2010 8:50 AM

The idea that we are experiencing deflation right now is absolutely ludicrous. That would only be the case if you were buying housing in the U.S. or personal computers and nothing else. If, on the other hand, you have to regularly buy gasoline and food, and have recently paid an insurance or tax bill, you would know that your average wage is not keeping up with general price increases.

I fear that the standard of living for many people only appears to be going up because they are financing their consumption purchases with debt. That seems to be a good deal right now, but if you have to re-finance this debt in the future at higher interest rates it won't look so good then.

Posted by: Dennis at December 7, 2010 9:07 AM

Printing more money appears to have always caused inflation in the past. The prime examples of this in the last century were Russia during the civil war, the Wiemar Republic and the so-called oil crisis in the late 70s and early 80s.

Many people may have forgotten the 20 plus interest rates of the early 1980s.

So while Bernanke says he is confident that he can control inflation, he does not say at what level.

Posted by: Ken (Kulak) at December 7, 2010 9:32 AM

I wouldn't believe anyone, wearing a pussy lil beard like his!!

Posted by: eastern paul at December 7, 2010 9:36 AM

Bernakne Geithner Obama ...continue to exceed the low expectation I place on them. Does that make me a bigot?

Posted by: john at December 7, 2010 9:38 AM

When the gubmint first spends the dollar it gets current 100% value. As it then circulates through the economy your value received may differ.

Posted by: Sgt Lejaune at December 7, 2010 9:40 AM

Under normal circumstances he'd be correct about the power of the Fed. But the Fed has mismanaged the fractional reserve and the money supply so badly, any attempt to contract the money supply to adjust for inflation would be deadly. OTOH expanding the supply will only inch them closer to the inevitable dollar collapse. Bernake has the option of rock or hard spot

Posted by: Bill at December 7, 2010 10:15 AM

It looks like the megalomaniac fever is spreading ... Obama brought it to Washington and now Bernanke has it.

There is a rule that goes something like this.

One can predict anything but the future. Bernanke has broken that rule.

Posted by: Abe Froman at December 7, 2010 10:16 AM

If I had his money and connections I wouldn't worry either. I was working when the interest rates were over 20%. You could get 18% on a GIC. It was tough with a job I wouldn't want to do it on a fixed income. It was strictly a cash economy to me including a heck of a deal on a new house they could not sell and the builder's mortgage coming due. I was the only offer they had and it is a fair sized company.

Posted by: Speedy at December 7, 2010 10:49 AM

I feel better now.

Posted by: Indiana Homez at December 7, 2010 12:09 PM

He is 100% able to make inflation go up. I doubt anyone would argue against that. Make it go down...not so much.

I once read a list of the mistakes people make when predicting the future. Two I remember were; assuming any positive trends will continue into the future and any negative trend will be easy to stop and reverse. He seems to be all over those two.

Posted by: JB1000 at December 7, 2010 1:23 PM

What a joke... he says because unemployment is so high, inflation is unlikely. In the 70s they had this exact scenario where inflation raged out of control and there was high unemployment. Names like "stagflation" (stagnating economy with high inflation) and a lot of talk about the Misery Index (which is the rate of inflation added to the unemployment rate). In the 70s the Misery Index was above 20% with unemployment getting approaching 10% as it is now. But according to Bernanke high unemployment rules out inflation. This guy claims to be knowledgeable about history... I was a frikken zygote when all this went on and I somehow have this knowledge.

'We've been very, very clear that we will not allow inflation to rise above 2 percent'

How does he do that? By lying. When we're all taking gold coins to the supermarket and the cashier is biting them to make sure the metal is soft enough, the jig will be up.

Posted by: BobC at December 7, 2010 2:21 PM

The Fed does have 100% control over monetary policy based inflation, which is doubtless what Bernanke meant, as it's the obvious context.

That does not imply (and I don't think for a second that Bernanke would say so!) that the Fed can perfectly control the level of inflation over any month or year as things go along; they can guess, and they can correct once the data comes in.

No need to blast him on this.

Posted by: Sigivald at December 7, 2010 5:02 PM

Later, he'll be saying,

"Absolutely, positively, 100% not guilty."

Posted by: POWinCA at December 7, 2010 11:07 PM
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