| Team Obama Deflects Blame for Higher Prices By Dr. Mark W. Hendrickson, FloydReports.com |
| As Americans increasingly feel the pinch of higher prices for food and fuel, the Federal Reserve’s QE2 policy of creating more money has been called into question. Asked if the Fed bore some responsibility for these vexing price increases, Fed Chairman Ben Bernanke essentially replied, “It’s not our fault.” Instead, Bernanke blamed the price increases on “global supply and demand conditions.” Is Chairman Bernanke correct? To use a well-known phrase: Not exactly. Far be it from me, as an economist, to downplay the importance of supply and demand in determining prices. Certainly supply and demand have been pushing food and fuel prices higher. But those factors don’t account for all of the increases. For Bernanke to claim that the Fed’s inflationary monetary policies have not put upward pressure on prices is preposterous.... |
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