4th February 2011
"The European Central Bank (ECB) has taken a strategic gamble that the current surge in food and commodity prices is not a repeat of the inflation virus of the 1970s and will subside without the need for a monetary squeeze."
Paul Kingsley comments: "I think the needle in his compass got stuck today. If he thinks that inflation is going to return to at or below 2% without rate rises he has caught an acute dose of Bernanke disease. Even the peripherals have inflation over 2% never mind Germany."
professory replied: "Trust me. I live in Germany and inflation is going to go skywards. I can already see it in the prices of petrol, health insurance, milk and bread in the supermarket and the price of vegetables. It won't take long for food inflation to move into other sectors and then all bets are off."
"Federal Reserve Chairman Ben Bernanke rejected complaints by China and other developing economies that U.S. policies are driving up global food and energy prices, and instead pinned the blame on accelerating growth in emerging markets and their inadequate response."
Richard Startzman says: "The fox tells the hens everything will be OK."
And Stephen Carroll wrote: "What a total and complete idiot. Words cannot express this man's lack of understand of what is totally obvious to anyone who is running a business. Inflation is here already and it is gaining momentum. It is only a matter of time before the cost increases are passed on to consumers. The FED missed the stock market bubble and the housing bubble and now they can't see the oncoming inflation. What is wrong with these people"
"Ben Bernanke, the chairman of the US Federal Reserve, has dismissed the idea that the central bank's policies are to blame for the rise in global food prices to a record high that helped trigger political unrest in Egypt."
berthavanation thinks: "Without exception, since taking up this post everything this man (The Ben Bernank) has said & done has been totally and categorically wrong. He was wrong on the US housing bubble, wrong on the bailouts, wrong on QE, wrong on interest rates and wrong on inflation.