Wall Street Journal: The Bernanke Reflation. The people who aren’t being fooled by all this are the American people. They don’t pay their bills with “core” dollar bills, and they know those dollars buy less with each passing month. This explains their rising economic anxiety — and anger — better than trade or job losses do, especially since the job market has remained relatively healthy. Inflation is the great thief of the middle class, as even Americans who don’t recall the 1970s are learning. With its all-in reflation bet, the Bernanke Fed is gambling with their money.
They are exactly right about this. To “cure” the hangover from the credit bubble — which the Fed helped create — the Fed is now aiming us into potential hyperinflation.