Bernanke Asset Purchases Risk Unleashing 1970s Inflation Genie

by Craig Torres - October 26th, 2010 - Bloomberg News

The U.S. Treasury Department yesterday sold $10 billion of five-year Treasury Inflation Protected Securities at a negative yield for the first time at a U.S. debt auction as investors bet the Fed will be successful in sparking inflation.

Bernanke is gambling with our future and no one in the Obama administration seems to care. There is a reason that our nation has never done this before. It is the equivalent of a gambler going all-in. If it is your own money, that may be a rational bet. When it is the nation's money, I question the morality of Bernanke's judgement. I question the ethics of any administration doing things that are immoral for the nation just because they may help investors. Taken to its absurdity, we get Zimbabwe.

Of course I have despised Bernanke since he and Paulson persuaded George W. Bush to bailout all the losers on Wall Street as the "ONLY way to save free enteprise." Yet Bernanke himself has been a crony capitlist who destroys free enterprise his entire career. Some may trust him. I do not.