Bernanke's 'Inflation' Record

Tyler Durden's picture

Addressing a question yesterday, from Senator Bob Corker, on his "being the biggest dove since World War II" and the "degrading effects that he's having on society," Bernanke responded proudly that be believed his "inflation record is the best of any Federal Reserve Chairman in the post-war period." Of course that is by his measure. We suggest, he and few of his transitory colleagues look at the chart below for a sense of just what his 'dovishness' looks like to the rest of the food- and energy-consuming world... or perhaps by 'best' he means 'most'.

CORKER: So I think that, you know, I don't think there's any question that you would be the biggest dove, if you will, since World War II. I think it's something you're rather proud of.... Just wondering if you -- if ya'll talk at all in your meetings about the degrading effect that's having on our society.


BERNANKE: You called me a dove. Well, maybe in some respects I am, but on the other hand, my inflation record is the best of any Federal Reserve Chairman in the post-war period, or at least one of the best, about two percent average inflation.

The Bernanke Era Inflation...


(h/t Paul Vreymans)

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ArkansasAngie's picture

The US has been exporting inflation for years

Benny certainly has certainly left his mark

The Alarmist's picture

Ben's right ... having delivered more inflation to more categories to more places in the world than any other Fed chair has in it's 100 year history, his record on inflation is indeed outstanding.

Cdad's picture

Can I get that chart on a t-shirt, please?  Maybe with a B. Bernanke portrait on the back?  T-shirts are still $5, right?  Can I get two of them, one for me and one for Ben?

You know, to start an open dialogue with The Fed, to bridge the divide, to conquer the communication problem, to somehow find some common ground....

....with the biggest and most successful financial criminal to have ever walked the Earth.


t0mmyBerg's picture

I appreciate your attempt at levity.  Personally I have had it up to here such that I can no longer try to be funny about this shit.  So rather than saying something clever, I will just say that the only thing worse than watching a smug, lying scumbag piece of shit Bernanke these last 2 days was actually watching "people" who somehow are our representatives in "the people's house" try to say anything coherent or even intelligible to the "good" professor.  I mean FFS, the members of the house must have an average IQ of something like 70.  The Ranking Member indeed.  Christ I am going to puke again.

yatikto's picture

Exactly,  everyone needs to sober up and actually present an argument instead of pointless jabs.

For example.  Why is debt a problem?  Because if you believe in accountability you believe that you have to pay it back.  If you don't believe it needs to be paid back, you don't believe in accountabilty, doesn't matter what else might be said.

Our government does not believe in accountability. Period.


Does krugman and so on believe that market discourages inefficiency?  No they do not, since they believe that everyone just needs something to do and get paid for it. (And this is on record, its a fact)

Private sector will not put up with that logic, but our government will.

So, our government is unaccountable and inefficient; and they don't see it as a problem.  Furthermore, criticism is seen as negativity and reversal of progress.

They'll die with a smile.



There is a chasm between neo liberals and conservatives.  And it will only get wider.

More_sellers_than_buyers's picture

How do you know we are fucked? Because this asshole never made a real dime in his life. Every business man can have thei opinion and act on it. Hell the idea that the economy will follow the market is not insane if you look at the numbers an past history... But for fucks sake if it's not working...and it's not ... Then figur out what will work! Typical ivory tower real world experience... Just do what the text book tells me...Fuck you bernenke

SeattleBruce's picture

"Because this asshole never made a real dime in his life."

So Beryankme, Obumao and 3/4 (7/8? 95%?) of Congress are peas in a pod.  This house o' cards is a coming down...

20834A's picture

What inflation? I just received notification from my electric coop that my rate is going up 9.9% a month. And from my credit union in regards to new/higher fees:

"We postponed implementing these changes for the past 18 months as we thought the economic conditions would improve and interest rates would rise which would contribute to building reserves. It appears the Federal Reserve foresees a different financial scenario and has committed to keeping rates artificially low through 2015."


Uber Vandal's picture

It appears the Federal Reserve foresees a different financial scenario and has committed to keeping rates artificially low through 20015

Corrected it for them.

flacon's picture

At least they blamed the right institution - and called them out by name. That's pretty impressive. 

akak's picture

Where are Orly's non-inflated chicken breasts when you need them?

insanelysane's picture

Bernanke means that he is the best from this point forward.  This shitburge will retire when shit starts hitting fan and be at the low end of the parabola.

Cdad's picture

You know...let's try to be civilized here.  Mr. Bernanke is not exactly a spring chicken, and perhaps his eye sight has simply deteriorated so that he is unable to see the far right side of that chart?

Other explanations might be that the poor fellow is carrying some baggage from the late seventies, painful memories of high interest rate mortgages.  Also, it possible that Mr. Bernanke has such a natural tendency for empathy for bankers and the possibility of....deflating assets...that...errrrr....he ummm.....

....he chooses to fuck over 99% of the entire population of the planet to keep the old money good and solid while crushing the currency of the poor, the fucking asshole.


taniquetil's picture

It's not Bernanke's fault. It's probably all the evil speculators. And stuff. I mean, who else would buy gold against dollars aside from evil speculators?



Stuffs And Stuff's picture

Stuffs was not involved.




Unfortunately, I can't afford to buy gold.

Bay of Pigs's picture

Maybe the inflation expert Orly can weigh in on this thread?

akak's picture

Don't bother her right now --- she's in the middle of cooking up some 49 cents/lb chicken breasts right at the moment.


(Of course, having been frozen since 1988, they are probably more than a bit freezer-burned.)

Westcoastliberal's picture

Thing is, guys & dolls, Bernanke really believes the crap coming out of his mouth.

I read something the other day, I think it was here on ZH, that made perfect sense and finally put things in perspective.

Going back at least to Greenspan and certainly Bernanke as well, have the belief that it's all about "the market", and that the economy will follow the market, so to improve the economy, the market must be supported with every tool we have.

Now, I'm not an Ivy league economist, but seems to me that's totally ass-backwards.

Just Ice's picture

Same illogic as merely getting rid of a symptom then claiming the underlying problem cured.

McMolotov's picture

You mean a brain tumor can't be cured with two aspirin? Heresy!

Temporalist's picture

Yes it's the old "If you have a headache smash your foot with a hammer."  See, no more headache.

adr's picture

um, that actually works.

I have smashed my pinky to take the edge off a migraine.

However I think the cure for the QE headache is cutting off Bernanke's head. I'm pretty sure my headache would go away.

thewayitis's picture

Right. They don't understand that 90% of buying in the economy is the common man. Not the 10% rich ....

max2205's picture

You guys don't buy the CPI #'s?

ceilidh_trail's picture

They know it. They just don't give a crap. Jamie Demon-"I'm richer than you".

Stuffs And Stuff's picture

Greedspan quite literally said this in a recent TV appearance:

"the issue is how does it affect the stock market."

"the stock market is the key player in the game of economic growth."

"if the stock market can hold up through this, then the effect will be rather minor."

jcaz's picture

It's ass-backwards even in their own house....

Did Volker give a shit about the stock market?   Nope-  he did what was he was paid to do- be an independent guide, didn't blink when the market puked and politicians freaked out;

Flash forward to present, and now the Fed chairman is just a whore to the politicians- "Mr Bernanke, go do our work"....

But now even Volker is an overpaid "consultant" for Obama-  the bureaucracy has won......

1984's picture

And they'd be right.  How can you work magic if you can't use smoke and mirrors?   

candyman's picture

I'm beginning to sense that Bernake is going to join Obummer on the 100 city road show. What is happening to this country!

AldoHux_IV's picture

This is why Dimon's richer than all of us. You can ask, you can protest, and you can even be angry, but in the end they're getting away with it because we don't want to stop it from happening or don't know it's happening.

spinone's picture

He's richer than all of us because he takes crazy levered bets.  When he wins, he wins 100 to 1.  When he loses, he blows up so bad that he gets taxpayer bailouts.  He's rich because he keeps doing this and doesn't go to jail.

venturen's picture

He is rich because you pay his losses and he takes the profits! Also he know what the analyst is going to say before he says it and he knows from the FED what the bond market will do, before it does anything. They aren't guessing...they are shooting sheepel in a barrel!

Dr Paul Krugman's picture

Most of the prices in those asset classes are either transitory, or controlled by speculators.

McMolotov's picture

And yet the transitory speculation bullshit didn't really take off until around the end of 1971. Care to explain, good doctor?

nope-1004's picture

Krugman just admitted that gold and silver are assets?  LOL.


McMolotov's picture

Only when it suits his argument. Otherwise, he claims gold and silver are just lifeless lumps that sit there, unlike a piece of paper that says Groupon.

chump666's picture

Ah yes speculation, when you can sell USDs with 0% interest and buy stocks under the blessing on the Fed's Wall Street underwriting skills.  Commodities are a hedge against war Krugman, y'know Japan and China already now are a cold war, Nth Korea nuclear tests and whatnot.  The DXY hasn't collapsed entirely because of China and South American USD black-markets, yes, to offset inflation, which is probably gone hyper in some sectors. 

Bernanke is leading us straight into war, if he pushes up Nat Gas further with Brent/WTI, South China Sea will go hot.

That is your hero's legacy.


adr's picture


Transitory in Krugspeak means it used to cost $20 and you made $500. It now costs $40 and you make $400. As long as the price stays at $40 there is no longer any inflation and you will get used to paying the higher amount. You have transitioned.

Perhaps the price wil fall to $35 from $40, like oil dropping to $90. You used to pay more, so now we have deflation. Completely forget that you are still paying at least double what you were.

azengrcat's picture

Transitory Global Warming Sandy Blizzards 9/11 Speculators Spending Cuts 1%ers New Normal Malybigiria Fiscal Cliff

BlueCheeseBandit's picture

Plus I hear beard and scalp wax have gone through the roof.

Bastiat's picture

Heavy Voodoo!

Thanks to Silver Surfer for linking this on another thread.

buzzsaw99's picture

Pigeon, flying rat, not dove. Doves are cute, the bernank is hideous.

fonzannoon's picture

I am sure the market will upend itself any minute and commit sepuku because the gig is up. Or not.

CNBS can't even hide it anymore. They must have never thought they would make it this far. They have no script for this. They can't believe the audience has not rushed the stage yet. They are left grasping at straws trying to make the sequester out to be another wall of worry that the underdog awesome market somehow finds a way to overcome all odds and rises above. It is disturbing.

Just Ice's picture

More and more it is glibly discussed that the Fed is juicing equities as if perfectly normal and a-okay.  We used to routinely, and scornfully, refer to countries suspected of such meddling as Banana Republics.  I find it disturbing that the market apparently has neither the power nor desire to rebel at its transformation from being free into a centrally planned puppet show.

Temporalist's picture

Just a few years ago people openly and violently denied this, the PPT and Fed influencing all markets, on "popluar" (not to be named) "Business" websites by so called posters (who were really propagandist moderators and sock puppets most likely).

Now it's just accepted as the "new normal."

At what cost insanity?

fuu's picture

Exactly. 5 years ago this was tinfoil hat teritory, now it's a sign of economic recovery.

km4's picture

The World's Largest Money-Laundering Machine: The Federal Reserve

the Fed's policy in plain English: Debt-serfdom is good because it enriches the banks.