Of course Bernanke ignored a housing boom and bust. He also ignored a a dotcom boon and bust, a global financial crisis, numerous bank bailouts, and a policy of “too big to fail” that is now “even bigger”.
Inflation Targeting at 2% Per Year
Bernanke brags about a 2% inflation rate as if it is something to brag about. It’s not. This is what it looks like over time.
Hockey Stick Inflation
Real Disposable Personal Income Per Capita
See the Problem?
Hopefully so, because it’s obvious. The moment (for any reason) wages stop rising at the rate of inflation, the system is in stress. Why might wages stop rising? Global wage arbitrage is certainly one reason.
Even if that did not happen, income skew comes into play. Wages of the top 10% rise far faster than the wages of everyone else. As proof, I present Top 1% Received 121% of Income Gains During the Recovery, Bottom 99% Lose .4%; How, Why, Solutions
The Source of Inflation
If you are looking for “THE” source of inflation, look no further than the Fed, fractional reserve lending, and government policies that benefit those with first access to money (namely the banks and the already wealthy).
Bernanke has the gall to brag about his 2% inflation fighting “achievement”, ignoring numerous boom-bust cycles, bank bailouts, and income skew.
The ultimate irony is the Fed and its inflationary policies is the primary reason inflation exists at all.
Mike “Mish” Shedlock