Bernanke blames commodities for recent inflation and says that the US dollar's value is not his domain

Bernanke goes to the press.

He ducks every issue. He blames oil price increases on supply, not new money into the system. He has to know that when he prints new money, he know where it's going. It's not going into long term financial assets, its going to commodities.

Furthermore, he says that QE2 worked. That type of thinking makes us question whether he will seriously push for QE3. We can see that commodities prices have done nothing but rise since the statements.

See Gold's reaction to his comments below.


Ron Paul's take, via IMW:
It’s smooth talking, to make current policy sound reasonable, and let it go at that. Because they never admit anything. When it comes to prices, it’s never their fault. I mean, how many different things did he mention about why prices go up, why we have inflation? He never admits it’s the inflation of the money supply that’s the problem.

When he was asked about the dollar, he said, “Well you know, the person in charge for the value of the dollar is the secretary of the Treasury.” Well, Bernanke can triple the money supply, and then he wants to duck the issue that he’s responsible.

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