I recently articulated my fears of oncoming inflation (among other things). Signs of it coming are all around us. Gas prices have been on the rise for more than a month for no real reason, as far as I can see, at least. Food prices have been up for a long time. The bailouts and now the "stimulus" bill have ensured that the government is going to pump fake money into the American economy--all without risking inflation, so the experts say.
Well, in January the wholesale inflation went up 0.8 percent, according to the AP, far exceeding what the "experts" had predicted of 0.2 percent. And yes, energy prices were largely responsible for the spike--increasing by 3.7%.
But, as the article continues to say,
"Federal Reserve Chairman Ben Bernanke told an audience at the National Press Club on Wednesday that he saw little risk that the Fed's efforts to fight the recession and a severe financial crisis would trigger inflation presusres. He said that once the economy begins to rebound and financial markets stabilize, the Fed will be able to quickly reverse the actions it has taken before inflation becomes a problem."
So, don't worry folks! These are professionals who know what they're doing. Despite our apparently rational fears of inflation, and the evidence in front of our noses, we have no reason to be alarmed. Move along, move along. There's nothing to see here.