Fed's Bernanke sees no U.S. inflation risks: Nowotny

Reuters ^ | 4-20-2013 | Reuters

[haffast]

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke told global policymakers he sees no risk to inflation in the United States, European Central Bank Governing Council member Ewald Nowotny said on Saturday.

Summing up presentations to an International Monetary Fund meeting, Nowotny told reporters Bernanke had given a "very optimistic" portrayal of the U.S. outlook.

"They see absolutely no danger of an expansion in inflation," Nowotny said. Bernanke had said U.S. inflation should be 1.3 percent this year.

[haffast]

I didn't know what a Nowotny was either.

"Ewald Nowotny (born June 28, 1944, in Vienna) is an Austrian economist and social democratic politician and currently president (governor) of the National Bank of Austria and member of the European Central Bank (ECB)’s governing council."

"He graduated with a doctorate from the University of Vienna in 1966, took his habilitation at the Johannes Kepler University Linz in 1972 and has been a full professor at the Vienna University of Economics and Business Administration since 1982."

"Since 1974, he has held various functions in the Austrian Social Democratic Party."

"The Social Democratic Party of Austria (German: Sozialdemokratische Partei Österreichs, SPÖ) is one of the oldest political parties in Austria. The SPÖ, which is among the few mainstream European social-democratic parties that have preserved their socialist roots and reject neoliberalism,[citation needed] is a member of the Socialist International and Party of European Socialists."

88888888888888888888888

My belief level in what Nowotny or Bernanke said doesn't even begin to approach 1.3%

(But a bacon,egg and cheese biscuit that used to cost $1 around here is now $1.50 "on special". A fountain softdrink tonight at O'Charley's restaurant was $2.49)

[sickoflibs]

Ping!

[nickcarraway]

I can only imagine Bernanke does believe that inflation is possible under any circumstances.

[Vaquero]

Bring back Greenspan

[Grams A]

(But a bacon,egg and cheese biscuit that used to cost $1 around here is now $1.50 “on special”.

We stopped at a drive thru around 11 p.m. after our bridge group ended last night. Bacon, egg and cheese biscuit and small black coffee - $4.89. Would hate to think what it would have cost if we had any inflation.

[ChildOfThe60s]

My Kroger brand bagels went from 1.99 to 2.39. In the real world that is 20 percent.

I could cite numerous examples of that, as well as significant decreases in the product packaging size without corresponding reduction in price. i.e. less product for the same or more money is a price increase everywhere except in liberal land

I would like to know who buys the consumables in Bernanke’s family? Surely not him.

[Mastador1]

I think you can blame most of that on Bio fuel, when you use a large percentage of a food crop to make Inefficient fuel it affects everything done stream. That’s why our beef, poultry and dairy are going through the roof. Aren’t we lucky to have such a capable government watching out for us.

[jiggyboy]

Uh huh. He assured us that the bust of the housing bubble would be “contained” and not affect the rest of the economy.

“Greatest Hits” (i.e. lies) here http://www.cepr.net/index.php/bernanke-greatest-hits

[jiggyboy]

Ha, you’re assuming too much even there. How many meals do you think he even eats at home?

[mazz44]

Isn't anybody getting tired of this B.S?! They hide everything. Just because the retail price of a finished commodity has not changed too much, does not mean the retail cost per ounce has stayed the same. Nuts and seeds, for instance. The 1 lb. bag is gone and the 12 ounce bag costs the same as the 16 ounce did. Ice cream cartons are smaller, but the price stays the same. Components on automobiles are thinner and flimsier, the grills are wrapped with chrome paper, but the prices are higher.

All this is just constant smoke and mirrors fantasy-land; protect your destructive agenda CR**!

It is getting really old...

[OldNavyVet]

Given the fantastic quantity of fiat dollars being printed daily, I don't think it will be long before paper for a $1 bill will cost more than a dollar.

Best way to prepare for paper insolvency is to stock up on metals ... especially coins ... of any denomination.

[LegendHasIt]

I can't see any inflation risk either!

[TArcher]

Inflation?  There is no inflation you infidels.  And all your Hum-V are still belong to us.  

Meanwhile, in Realityland:

 

Effect of Food Price Inflation

Food riots occurred in 2008 and in 2011. Many say the radical changes brought about by the Arab Spring were an effect of food riots. Researchers point out that these food riots were caused by a spike in prices. However, as prices continue to rise, food riots could become an ongoing response to unsustainable price increases. Unless a concerted effort is made to correct the underlying reasons for food price inflation, global unrest could become a more prevalent result. (Source: The Food Crises and Political Instability in North Africa and the Middle East, By Marco Lagi, Karla Z. Bertrand and Yaneer Bar-Yam. arXiv, Aug. 11, 2011 in Wired Magazine, Food Prices Could Hit Tipping Point for Global Unrest, August 15 2011) Article updated February 5, 2013