Fed Chief downplays risk of Stagflation. You can just picture the author screaming "BULLSHIT!" to Bernake as he writes this article. At the exact same time that Bernake was speaking, Oil his the highest level ever (adjusted for inflation) and the dollar reached a new low against the Euro. Think the two could be related?
Dare I throw in a third thread responsible for the other two? Iraq. Nobel economist analyzes Iraq. $3 Trillion is his MOST CONSERVATIVE estimate of spending to date. He includes some budgetary vignettes that are priceless. Like how the army requires soldiers to pay for damaged helmets, even if the damage comes from an enemy bullet or bomb.
Bernake is quietly wishing Greenspan was there to help him out. Oh, whoops, Greenspan is fiscally cockblocking Bernake by advising Gulf States to drop their dollar pegs. On a related note, the much ballyhooed Iranian Oil Bourse opens on the same day oil closes above $100 for the first time ever. West Texas Intermediate (WTI) had traded above $100 during the day and had closed once at $100, but never over that figure.
Warren Buffet gives the Fed the benefit of the doubt, but makes some interesting observations about the economy (and investing in general). Well worth a read.
UPDATE- ...And the next day, the Dow falls 315 points.