The headline is Bernanke sees inflation...
But if it said Bernanke sees "weak dollar"... it would probably be more accurate...
Of course a weak dollar could cause an inflation... So it's six of one and half dozen of the other...
But still the weak dollar is "for sure" given the macroeconomic problems the US is having...these problems are totally unrelated to the current strengh of the economy...or wages...or even inflation.
THE WEAK DOLLAR IS STRUCTURAL...
BUT THE ECONOMY AND INFLATION ARE ALL ABOUT WHO'SE PRINTING MONEY AND WHY...
In other words if Bernanke quit printing money today:
THE DOLLAR MAY STILL BE WEAK BECAUSE OF OTHER "MACRO" FACTORS GOING AGAINST THE US ECONOMY...LIKE THE MASSIVE TRADE DEFICIT...THE HUGE WAR BUDGET...AND A DEBT BASED ECONOMY...OR THE LACK OF PRODUCTION CAPACITY IN THE US...
So call it inflation...or call it an attempt to address the weak dollar...
Perhaps the weak dollar would scare people too much...because it would put things on a higher intellectual level than Americans are used to in their public/economic dialogue...
Americans want to hear that inflation is a threat because workers are making too much money! Not because the FED and Washington and Wall Street have trashed our economy with corporate looting...and asset inflation that is now finally coming home to roost...
