Ben Bernanke held a press conference the other day and said next to nothing new. He loves to use buzz words, particulary the word "transitory", to explain away the inflation in food and energy that everyone on Main Street seems to be feeling except him.

The Federal Reserve released the following comment a few days before his press conference:

"Increases in the prices of energy and other commodities have pushed up inflation in recent months. The Committee expects these effects to be transitory, but it will pay close attention to the evolution of inflation and inflation expectations. "

Bernanke told the public that the effects of inflation will be "transitory" in trying to explain away the very painful price increases that we all feel. The word transitory should not be used in economic terms. However, it is the new "buzz" word that the financial blowhards use to try to impress people. Transitory means that something will eventually pass away.
 
How smug of Bernanke. He has cheapened the dollar by printing trillions of dollars and keeping interest rates artificially low while buying our own debt. Our GDP growth rate has now decreased to 1.8% while the REAL inflation rate is now 3.8%. This is a classic case of STAGFLATION that is coming...stagnating growth coupled with rising prices.

The question arises with Berrnanke...does he pump his own gas? I doubt it. He lives in a wonk beltway world of numbers, theory, and stretch limos and gas guzzling, black government SUV's. He is sheltered from the real world of stagnating wages, rocketing inflation, and high unemployment.

He needs to take a trip to the grocery store now and then and gas up his government SUV along the way. He will then understand that the effects of inflation are not transitory, but downright painful.



The increase in the price of gold the past ten years has not been "transitory".
Gold bugs should thank Ben.