Bernanke & Inflation

The WSJ, channelling gold bugs and fever swamp Austrians, frets over the August Fed pause:

Mr. Bernanke no doubt hopes that yesterday’s pause is one that refreshes; we fear it has only postponed the ultimate day of reckoning.

James Hamilton instead offers a timely warning:

There are those who will doubtless never surrender their conviction that Ben Bernanke is in reality a bird, with the latest FOMC statement confirming him as a member of the family Columbidae. To those pundits I repeat my previous warning—if you invest based on that misunderstanding of Bernanke, you’re going to get whacked down by reality.