The View From 1776
Sunday, June 29, 2008
Bernanke’s Inflationary Bust
The Federal Reserve Chairman, in the face of unequivocal contradictory evidence, clings to the Keynesian, liberal-progressive orthodoxy that pumping more money into circulation will inflate the economy into prosperity.
British socialist economist John Maynard Keynes was aware that debasing the currency with government expenditures greatly in excess of existing tax revenues would create inflation in the long run. When challenged on that subject, his flippant reply was that, in the long run, we’re all dead.
Nonetheless, Ben Bernanke remains a reverent acolyte.
For a current update on Keynesian inflationary manipulation of the economy by the Fed, read Larry Kudlow’s column, Fed fallout.