Monday, April 25, 2011

Are economists insane? These two pictures are worth 1000 words!

Many economists will tell you that inflation is under control when you factor out the volatile components of food and energy. The fact of the matter is that these two components are for the most part all that we regular citizens are concerned with!

Compare these two pictures from the gas pump, one from April 3, 2011 and one from April 25, 2011. In my book we have some serious inflation going on.

This Wednesday Ben Bernanke, Chairman of the Federal Reserve will take the never been done before step of holding a question and answer session with the press to attempt to explain why things are as they are and how they will get better.

By using typical Fed speak, the answers will no doubt be incomprehensible. That is unless the mainstream media presses the issue. Mr. Bernanke has been practicing his answers though as this mention in the Wall Street Journal attests:

"... Still, as markets explore new ground in Mr. Bernanke's push to increase transparency, some say investors may get few new clues. The chairman has spent weeks practicing responses and studying how the question-and-answer session might play out..." (WSJ)

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