Bernanke Admits, and Defends a Spike in Inflation
November 7, 2010 • 4:59PM

Mad-Man Bernanke attempted to defend his intentional destruction of the U.S. and world economy, and answer the deafening denunciations from around the world, before two audiences in the South, over the last 24 hours. His insane theme is that there is "slack," and "under-utilization of resources" in the U.S. economy, so the Fed must use an "expansionary monetary policy."

Yesterday in Florida, at a Jacksonville University event, Bernanke claimed that the Fed's money printing will "bolster a dollar whose weakness has sparked cries of foul from Bogota to Beijing," according to Reuters.

Showing his insanity, Bernanke "told the students that while commodity prices have risen sharply, they were the exception amid generally muted prices for other products and should not cause a serious problem. Bernanke said there was ample slack in the U.S. economy that will prevent producers from being able to fully price costlier commodities into finished products that consumers buy."

As Bernanke said: "Globally traded commodities like energy, food ... have been going up pretty sharply. Where there's a lot of slack in the economy ... it's very, very difficult ... for producers to push through those costs to the final consumer." Having admitted the inflation spike, he incredibly argues that "It's going to take some further growth and some further reduction in slack before we begin to see any kind of inflation pressure."

In the face of international condemnation, Bernanke argued that the Fed policies aimed at giving a boost to the weak U.S. recovery "would pay dividends around the world." Is further proof of insanity needed?

Today in Georgia, Bernanke spoke at an event sponsored by the Atlanta Federal Reserve. Defending the Fed's newly-announced trillion dollar bail-out spree, he said, "We see an economy which has a very high level of under-utilization of resources and a relatively slow growth rate. The standard considerations suggest we should be using expansionary monetary policy, and that was the purpose of the action" announced this past week.