Bernanke money printing is the driver of this manipulated boom. It will bring major price inflation as the money works its way through the economy. Though there are opposing views.
Bernanke thinks the outlook for prices is stable. Yesterday, the Fed Open Market Committee issued a statement saying:
Inflation has been subdued in recent months, although prices of crude oil and gasoline have increased lately. Longer-term inflation expectations have remained stable.This as the man prints and prints dollars. Amazing!
Then there is Krugman who thinks we are still in a Depression.
These guys are mainstream goofs, who have no idea how the economy works.
Bernanke also thinks he is going to be able to keep rates low through 2014. From the same FOMC statement quoted above:
....the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.No way, no how. It's more proof that Bernanke is clueless. He is lucky if he gets out of 2012 without raising rates. NO WAY does he make it through late 2014 without major rate hikes by hundreds of basis points. He will look like a buffoon. The man should be the sports reporter for The Onion and assigned to cover the Washington Generals.