Mark Hendrickson over at Crisis Magazine explains – first taking note of the idiotic federal policies which have actually restricted the supplies of oil and corn (just to name two commodities), then pointing the finger at where the “general” rise in prices comes from:
…Bernanke and the Fed are not blameless here. If the prices of a small number of commodities rise while most prices do not, we would reasonably conclude that those price movements are dictated by supply-and-demand factors. But when prices in general rise, that is the smoking gun that points to an inflationary monetary policy.
Since the Fed’s QE2 program was launched last September, the Commodities Research Bureau index of 19 basic, widely used commodities has risen by almost 40 percent. Has demand risen and supplies fallen significantly for all commodities since September? The odds against such an improbable coincidence are astronomical.
Instead, the answer is obvious: The Fed has flooded the financial system with newly created money, and the inevitable result of a lot more money bidding for approximately the same supply of goods is markedly higher prices…
It is here, and it is likely here to stay for a while. I don’t think we’ll get a bout of hyper-inflation, but the government policies of Obama and the financial policies of Bernanke have given us a round of “staglation” to deal with. Stagnant economy, rising prices. The big worry is that there are still rumors that Bernanke may go for another round of money printing after he finishes the current bout. The worry, for Bernanke and the banksters, is that if free money isn’t provided by the Fed, we’ll have a stock market collapse and renewed recession. Of course, we’ll have that if we keep printing, too…it’ll just take longer to get there. You really can’t repeal logic – and when things are way over-priced (as things like stocks and housing were in 2008) then only allowing them to settle to their real value will fix the problem.
But that isn’t what Bernanke wants to do – and it looks like he might keep trying his print-madness for a while longer. And, so, just prepare for it. We endured Carter, so we can endure Obama…but let’s just be sure that we repeat the end of Carter, too.
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