Pinocchio's Moment Of Truth

Fed Tries to Stave Off Stagflation

WASHINGTON (AP) -- The Federal Reserve is ready to lower interest rates again to brace the wobbly economy even as zooming oil prices spread inflation, Chairman Ben Bernanke signaled to Congress on Wednesday.

The Fed may be more than ready to lower interest rates again, but Zooming oil prices" are not what is spreading inflation. The World's central banks are the ones spreading inflation, and the one whose chief steward is Capt. "Bumbling" Ben Bernanke is leading the inflation surge. For the last time people, rising prices DO NOT cause inflation. Rising prices are a "symptom" of inflation. Inflation is caused by a rising money supply, and the World's central banks are working 24/7 to see to it that that money supply remains staggering. Quit blaming Oil prices for inflation, and start holding the clowns running these central banks accountable.

"The economic situation has become distinctly less favorable" since the summer, the Fed chief told lawmakers.

TRUE.

The country should prepare for "sluggish economic activity in the near term," Bernanke said.

TRUE.

Were energy prices to continue to rise at a sharp clip -- something the Fed does not anticipate -- it would "create a very difficult problem" for the economy, Bernanke said.

TRUE. [But only those with their heads where the sun don't shine do not anticipate higher energy prices.]

Bernanke was asked when he thought the housing market might stabilize. It's possible, he said, that by "later this year it will stop being such a big drag directly" on the economy. But home prices probably will decline into next year, he added.

"It is very difficult to know, and we've been wrong before," Bernanke said.

TRUE!!! Very wrong, and many times wrong! Capt. Ben, it took a very brave fella to come here before us today and not only tell us the truth, but to admit you were wrong. Thank you. [But you're still a bumbling idiot.]

"Should high rates of overall inflation persist," Bernanke said, "the possibility also exists that inflation expectations could become less well-anchored." If people think inflation is escalating, they will act in ways that could make things even worse, a sort of self-fulfilling prophecy. Bernanke said that could complicate the Fed's job of trying to nurture growth while keeping inflation under control.

If oil prices continue to skyrocket this year, it would be "hard to maintain low inflation," Bernanke acknowledged.

If you ever need proof that the US Government is trying to pull the wool over your eyes about inflation, this last comment by Capt. Ben makes it pretty clear. Read it again. The Fed will NEVER admit that they are the sole source of inflation...NEVER. "Should high rates of inflation persist..."? Capt. Ben, you and your cronies at the Treasury Department are the ones counterfeiting money. We'd go to jail if we were caught doing it. Damn it Ben! High rates of inflation WILL persist as long as you keep throwing your funny money at the country's fiscal ineptitude. Turn off the presses if you want to see inflation cease. Quit blaming everybody else for a problem you and Elmer and the rest of your brotherhood have created. Quit lying about. There are no more "expectations" about inflation. The cat is out of the bag, and it's tail is on fire...inflation is running wild.