Thank You for the Transition Bernanke

There is the view today that given the +0.5% gain in July CPI yesterday, the Fed’s hands are now tied. But that the Fed’s hands had been tied all along.

The inflation spike H1 was cost push, due to higher commodity prices, much of that due to a weak $. And the weak $? A direct result of QE 2.

Of course Bernanke told us those higher commodity prices "will be transitory." He should know. This inflation kills real growth, and it did.

Thank you for the transition Bernanke.


Robert Craven