The Fed and Inflation

"It's not clear that we can get substantial improvements in payrolls without some additional inflation risk."

-Ben Bernanke, April 27, 2011

Those of us buying screws, nails, sheetrock and other primary construction materials know that the "additional inflation risk" has already come to roost. I believe inflation is being significantly under reported and maintain that of the three options to attack the Federal deficit, raising taxes, cutting spending or inflating our way out of the problem, our leadership will choose inflation. It's the most politically expedient and, of course, the most cowardly. It's also a transfer of wealth from you and I due to poor leadership!