"Well, this fear of inflation is way overstated. One myth that's out there is we're printing money. We're not printing money. "
- Ben Bernake in his 60 Minutes interview
After being wrong about every major macroeconomic forecast he has made since becoming head of the Fed, Ben Bernanke has not lost much confidence in his forecasting abilities. He is 100% certain that inflation won't be a problem. He must believe he is due to be right after saying that housing wasn't a bubble, that subprime was contained, that the credit crisis was contained, etc. After all nobody can be that wrong, that often.
Bernanke said he is “100 percent” confident that, when necessary, the central bank can control inflation and reverse its accommodative monetary policy.
Ben Bernanke reminds me of that gambler in A Bronx Tale, who always loses. Right now those betting on Treasuries might want to put Ben Bernanke in the bathroom.