read a report today that said US inflation was near 8% and Europe ~5%.
I think we all know that low interest rates create an environment where inflation thrives.
and what would normally happen is that CBs would hike interest rates to combat inflation.
Not so with the US. At near zero rates they are injecting $100 billion a month into a fragile economy (with 4 more months to go) and aggravating inflationary pressures.
There's talk around the Fed of QE3 so this enigmatic Bernanke thinks he can geld the stallion while patting it's nose.
This is all starting to look like either a complete stuff up or a piece of a master economic strategy.
Europe of course has very few options......and no Bernanke.
