In a recent article titled Why Inflation Erupted: Two Top Economists Have the Answer,” former Fed chair Ben Bernanke and former IMF chief economist Olivier Blanchard claim to have identified the culprits behind the current inflationary surge. However, their explanation seems more like a comedic attempt to divert attention from the real root cause. By pinning the blame on factors such as the pandemic, stimulus measures, labor market dynamics, commodity prices, and even Google searches for “shortage,” Bernanke and Blanchard conveniently overlook the elephant in the room: the relentless money printing by central banks.
A Comic Tale of Misdirection
In their quest to provide a comprehensive analysis of inflation, the duo fails to acknowledge the fundamental role played by monetary policies in fueling the current economic turmoil. Instead, they paint a whimsical picture, attempting to attribute inflation to a series of unrelated factors. It almost feels like a slapstick routine, with Bernanke and Blanchard desperately trying to shift blame away from the very mechanism that they once championed: the money printers.
Ignoring the Money Printing Phenomenon
While the economists mention factors like supply and demand imbalances, public inflation expectations, and supply-chain disruptions, they conveniently sidestep the excessive liquidity injected into the financial system by central banks. It’s as if they are trying to keep a straight face while avoiding the undeniable truth that the continuous expansion of the money supply inevitably leads to inflationary pressures.
A Deliberate Misdirection
Bernanke and Blanchard’s attempt to pin inflation on a laundry list of causes is not only amusing but also reveals a deliberate effort to deflect attention from their own policies. By deflecting blame onto external factors, they hope to evade responsibility for the consequences of their actions. It’s akin to a magician attempting to distract the audience with flashy tricks, hoping they won’t notice the hidden sleight of hand.
The Money Printers: The Real Culprits
In reality, the ongoing inflationary surge is a direct consequence of the unprecedented money creation by central banks. Governments and central banks worldwide have resorted to massive stimulus measures and quantitative easing programs, flooding the economy with freshly printed money. This influx of liquidity fuels price increases across various sectors, eroding the purchasing power of individuals and destabilizing the economy.
Bernanke and Blanchard’s attempt to assign blame for inflation everywhere except the money printers is a hilarious spectacle. Their intricate dance of misdirection only serves to emphasize the importance of recognizing the root causes of economic phenomena. As the comedic performance unfolds, it becomes clear more than ever that the relentless money printing by central banks remains the primary driver behind the inflationary pressures we currently face.
