Charles Grassley has opined on the re-appointment of the Fed's capo de capo tutti, Ben Bernanke, and the Senator's statement reveals that he has no idea what The Chairman of The Federal Reserve hath wrought.
Here are The Senator from Iowa's comments, courtesy of The Hill.
"We won't know for a year if he's done a good job so far, because he shoveled money out of an airplane to save banks and the financial system," Grassley said in a conference call with Iowa reporters. "But shoveling money out of an airplane to solve problems can be inflationary — in this case, hyperinflationary — if he doesn't start mopping up some of the money that's out there."
Ugh. A good job? You definitely are not paying attention, Chuck, because there is no hint of the sort of inflation you have in mind. No, there is only rampant deflation. The hyper-inflation you posit won't look anything like the inflation the U.S. experienced in the 1980s. It will look like Argentina circa the 1990s. It will be caused not by too many dollars chasing too few goods, but will instead be the result of the nation's absolute and irrevocable insolvency. When the U.S. government debt markets are ineluctably shunned like a leper at a cocktail party, (at all points along the curve) Congress will raise the debt ceiling yet again, which will allow whoever has control of the money supply, most likely The Fed, to print with absolute abandon. And print like there's no tomorrow they shall, because they will have no choice in the face of a moribund bond market and plummeting tax receipts. That's how one gets hyper-inflation, Senator.
In the meantime, I think you will find, if you look behind the curtain of the MSM's "green shoots" lollapalooza, that what we have with respect to an economic recovery is all smoke and mirrors. In the words of Gertrude Stein, "there is no there there." The banks aren't doing much lending now, and all that cash that you are worried will cause inflation, the same cash the big boys were given-it wasn't shoveled out of a plane, but removed from the wallets of future generations of U.S citizens- in exchange for their almost limitless toxic trash, is either now in the process of creating more idiotic asset inflation vis a vis the share markets, or it is being deployed into "safe" returns within the banking system itself. There is a very good reason for this, Senator, which is that the consumer, the same consumer who votes for you, and represents 70% of the U.S. economy, is on their knees-preparatory to being flat on their backs- because the jobless numbers aren't improving, and their debt load remains just about insurmountable. Until that changes, and there is nothing on the horizon suggesting it will, the prospects for economic recovery worthy of the name remain very poor.