Inflation: China and the US

There is an old saying. “Be careful what you wish for, you might just get it.”

In the United States, Federal Reserve Chairman Ben Bernanke has been singing his inflation song for 8 years1. It's very clear that Chairman Bernanke fears deflation, first and foremost. The reason for this is that deflation is a force difficult to stop once its spiral begins. But many people think US inflation is beginning to show its impact. What does Chairman Bernanke know and fear about deflation (the experience of the Great Depression) that we do not?

Written by Michael A. Berry, Ph.D. - [ Discovery Investing Web Site ]