Mr. Ryan said he feared the Fed would only notice inflation after it had started to rise, and he held up the Wednesday edition of The Wall Street Journal, citing a headline that stated: “Inflation Worries Spread.” NYT
Mr. Bernanke also played down those concerns. “Inflation is taking place in emerging markets because that’s where the growth is, that’s where the demand is and that’s where, in some cases, the economy is overheating,” he told Mr. Ryan.
“Listen you moron, I’ve spent my entire life studying inflation. Inflation’s happening in China because they adequately responded to the global economic collapse with a huge stimulus that brought their economy back to pre-Recession growth and then some,” says nerdy chairman.
We have the tools to fight inflation when it happens. You raise interest rates. Given the interest rate is at 0 because we’re still in a terrible economic situation, we have a lot of firepower to bring against inflation IF it ever shows up in America. Raising interest rates in America to fight inflation in emerging markets, hoping that this will stave off nonexistent inflation here, is not an effective policy.
Example 13,345 of why politicians are horrible.