Deflation/Inflation

Mr. Bernanke, head of the US Federal Reserve, and Canadian business broadcasters fear deflationary pressures in the US/world economy; so to continue fighting deflation Bernanke will continue flooding the world with greenbacks.

Those of us who continue shopping for food and petroleum products (the too volatile to be counted necessities of life) and bound to pay ever rising rates for electricity, water, insurance, postage, HST, and communications experience inflation because the prices of these things increase much faster than the wages needed to pay for them.

By his press conference on April 26, 2012 Mr. Bernanke appeared to have begun worrying about inflation, though only moderately as he attempts through some form of monetary policy, which until 2014 at least will not include raising interest rates, to keep Core inflation from rising beyond 2 – 2.5%. but regardless of his earlier fear of deflation his real preoccupation now is inflation. But Mr. Krugman, Mr. Bernanke’s presently famous prize-winning critic says that Mr. Bernanke is now too concerned about inflation and should allow the cost of living to rise above the chairman’s 2-2.5% inflation target to stimulate job growth, which even the chairman believes is rather less than robust.

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