In his appearances yesterday and today, Bernanke talks about his worries about inflation, but concludes that it is moderate and under control at the moment. That may be true, especially when energy is factored out -- and even more true when the sluggishness in the housing market is factored in -- but the real inflation -- the one we live with daily -- clothing, food, AND energy -- is not in check and it is not under control.
I am glad inflation remains Bernanke's "predominant policy concern" and that he is on the sub prime slime like a laser. All that still doesn't give me comfort -- not when I go out to buy food, clothing my family and fill up the car. You don't need to be an economist to know that inflation in those areas is raging and hitting us all hard, especially as salaries are set to the cumulative inflation rate, if they pay attention to inflation at all.
Food prices have risen unrelentlessly this year, replacing energy as a major source of inflation -- and that says alot. Grocery prices have risen 8% already this year. Ouch!
All I can say is it is time for Bernanke to start feeling our pain and to make real inflation a tad more than a "predominant policy concern."
Two articles worth reading are:
http://www.nytimes.com/2007/07/19/business/19fed.html
http://www.nytimes.com/2007/07/19/business/19econ.html
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Protecting Your Retirement from the Falling Dollar by PhilR - Nov 17, 2007.
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