Bernanke's words have inflamed the equity market, and driven a flight to the much suppressed metals as the shorts lost control of the market.
I still believe that stagflation is the most likely forecast, but the world is getting a stronger whiff of pure monetary inflation from the central banks, despite the best efforts of the financiers and their apparatchiks to suppress it.
Stagflation is a weird kind of beast. I remember when economists said that it was not possible, until reality showed them differently. And then it was possible because of an exogenous shock, caused by the oil boycott and cartel. And now they may recognize it as the result of policy errors in support of the one percent and their financial cartel.
The illusion is powerful, but the world sees.
Gold Bar Premiums In China Hit Record Highs On Lower Paper Gold Prices
These are frightened, desperate men who are trapped in a web of their own lies. They see no way out, and so will continue on doing the same things, over and over, until something breaks. And then will come the deluge.