2010-11-13 — cnbc.com
A new pricing survey of products sold at the world’s largest retailer showed a 0.6 percent price increase in just the last two months, according to MKM Partners. At that rate, prices would be close to four percent higher a year from now, double the Fed’s mandate...
But since [announcing the latest round of quantitative easing], interest rates have actually gone up, backfiring on a Fed chief who wants his quantitative easing to spark inflation of 2 percent annually. A moderate amount of inflation would be considered good for the economy. The problem is that inflation is already running well above a healthy level, investors said, Bernanke is just not looking in the right place, like a Walmart.
We would suggest that Bernanke doesn't want to look at Wal-Mart -- and what inflation might be in the real world. That's because there's no real deflation; the purpose of this whole exercise is to prop up the money center banks that are insolvent, and fund the federal government by monetizing the deficit.
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