As soon as the CPI numbers are announced “hysteria flourishes”. Ron Paul, given his position as chair of the House committee that oversees monetary policy, may be considered the “representative conservative agent”. After Bernanke´s recent press conference following the April FOMC meeting, he stated:
A “staged press conference will not be enough to stop the growing demand for real Fed transparency,” said Paul, adding that “the American people want real answers about Fed bailouts, lending to foreign banks, and most of all inflation.”
The Congressman vowed to press ahead with his efforts to audit the Fed, and to continue to expose Bernanke’s deliberate devaluation of the dollar, which Paul urges is paving the way for “hyperinflation and the destruction of our currency.”
Steve Chapman takes the histrionics seriously:
“The Bernanke policy of printing money is setting the stage for mass inflation,” claims former House Speaker Newt Gingrich. Rep. Ron Paul, R-Texas, decries “the inflation all Americans suffer due to the Fed’s relentless monetary expansion.” Former Sen. Rick Santorum, R-Pa., fears not just inflation but “potentially hyperinflation.”
The claim has a surface plausibility. If the money supply is growing and prices are rising, what more evidence do we need? But first impressions, in this case, are badly misleading.