Bernanke seems intent on yet another round of stimulus, long after it will do any good. That will open the door to inflation -- and within a few years, $7-a-gallon gas.
Winter's chill is giving way to the rebirth of spring. But it's not just the warmer weather that has investors in a celebratory mood. Stock prices have been blooming in a low-volatility rise that seems perfectly, well, natural.
And investors are enamored with the idea of economic deliverance at the hands of Federal Reserve Chairman Ben Bernanke, via a new round of stimulus involving hundreds of billions more in cheap dollars. He will keep stocks rising. He will solve our intractable problems. It's a cult of personality. And it's a mistake.
It won't be the economic salvation investors expect; Bernanke's about to unleash a hellish inflation that will burn the economy for years. It'll be a slow burn that eats away at the average American's already-diminished living standards through pricier food, fuel and other necessities at a time of stagnant wages, depressed wealth and diminished savings.
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