Bernanke pledges to keep interest rates low for at least the next two years – meaning real interest are several percent negative. Large negative interest rates rapidly lead to economic crisis.
“The low level of inflation is a validation,” Bernanke said. “There are some who were very concerned that our balance-sheet policies and the like would lead to high inflation. There’s certainly no sign of that yet.”
Really? Sales have gone up ten percent in nominal value, which only makes sense if the real rate of inflation is seven to ten percent. The US economy is on fire, and Bernanke pledges to continue throwing gasoline on the flames. (more…)
