Bernanke Further Behind the Inflation Curve

by: Tim Iacono

Well, truth be told, Fed Chief Ben Bernanke is now so far behind the inflation curve that he’ll have to ask directions to find it, a point that became clear to me when I updated the model portfolio at Iacono Research for the next installment of the newsletter this weekend – it’s now up 8.1 percent for the year and that includes a pretty big cash position.

This chart of the day at Bloomberg tells part of the story that should get more interesting as we get closer to “The Bernank’s” inaugural post-FOMC press conference later this month.

We now live in a part of the country (Montana) that, fortunately, has some of the lowest gas prices in the nation, but it still seems like inflation is quickly spiraling out of control (thank God – a new set of Costco coupons arrived in the mail today). I can’t imagine what it’s like to be unemployed in, say, California where, you have to pay $4+ a gallon for gas to go look for work when you know the odds are stacked against you.