In a speech prior to the G20 summit in Paris, U.S. Federal Reserve Chairman Ben Bernanke essentially ignored the reality of inflation blaming the emerging markets increased demands for price increases. He also shifted the blame to China’s Central Bank monetary policy of keeping the yuan artificially low for just about everything else.
Finally, there was no mention at all of his own QE2 policy to the tune of $600 billion or refusal to increase interests rates to bring the US economy out of the Great Recession. Once again, Mr. Bernanke behaved more like Mr. Magoo than the global economic leader his position requires. Unfortunately, this isn’t a cartoon his actions will not come together into some happy, comedic ending.
For further details on the speech: Don’t Blame Me Blame Everyone Else.