Evil Bernanke printing $$$ is causing inflation, evil man!!!...... or ... not?
I would like to offer up a thought and maybe spark some discussion.
The component of investors most vocally and profoundly opposed to Bernanke, the fed, QE, QE2, "money printing", and more thinks like this: all this "money printing" will cause huge inflation, the best way to hedge against inflation is by buying commodities like gold and oil, so buy those. They hate bernanke and rail endlessly against him and his practices and point out that inflation is rampant: just look at commodity prices.
Then margin-limits on commodities are changed, and...
gold and oil are down 10% (or close) in an instant.
So what is causing the rampant run-up in commodity prices and the cost-push inflation it forces? Bernanke or the speculators that hate him?
Is all that "money printing" causing this, or is it being caused largely by market speculation on an abnormal scale (presumably some commodity speculation is always present) by the very people who hate inflation the most? It is certainly a popular, and crowed (probably record-crowded, historically) trade - long commodities.
Is it Bernanke, or is it th anti-Bernanke crowd that are causing the commodity inflation we've seen?