Last month, in a newspaper column of his own, Federal Reserve chairman Ben Bernanke, said the huge amounts of money the U.S. central bank has pumped into the economy will not undercut its ability to push borrowing costs higher when the time is ripe.

Stressing that the weak U.S. economy will likely warrant exceptionally easy monetary policies for a long time to come, Bernanke outlined in a Wall Street Journal opinion article how the Fed could raise interest rates even with cash flooding the financial system.

"At some point, however, as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation problem down the road," Bernanke wrote.

The outline of the Fed's "exit strategy" from the extraordinary monetary policy easing it has undertaken in the past two years to deal with the global financial crisis was the subject of testimony to Congress by Bernanke in his twice-a-year economic report on July 21.

But all the Narcicisst in Chief hears is

"The United States economy is now out of the emergency room and appears to be on a slow path to recovery."

All the rest is just racism and hate speech.

They'll "quietly let inflation increase". Yes, and it will give the illusion that everything is ok while the Administration tells us it's so.

You can expect Warren Buffett to be tossed under that proverbial bus any minute now. The audacity to question the anointed one - under the bus!

Retail spending has dropped off a cliff. Click on the image to go to retailsails.com which is has a lot of in-depth information about the dismal level of retail sales.

And with the decline in spending, imports decline and, in turn, the ability of foreigners to finance our deficit spending. As they decide they no longer want to buy US treasuries at 3.5% but instead would like to buy stock in undervalued companies, real estate or maybe gold, the Federal Reserve is going to have to work overtime to print all the money it needs to fund the government spending. Buffett projects that the Treasury will need to finance at least $900 billion this way!