US adopts inflation policy.

[ZenOps]

http://www.bloomberg.com/news/2011-09-18/bernanke-joins-king-tolerating-more-inflation-as-economies-fail-to-revive.html

"Tolerate" inflation policy. In otherwords that 1.5 litre tub of 800 gram ice cream, which used to be a 4 litre 3.2 kilogram is going to cost even more.

The policy has been stated that the US wishes to tolerate/generate small levels of inflation.

[TomK]

Some people think Bernanke will announce this week that they are going create an inflation target. They will sort of "order" inflation to be 3% or so.

Central banking is such a weird thing. On the one hand everyone knows that all they can do is print money, but on the other the markets seem engulfed in this "will they or won't they?" business.

If the US could devalue its currency by 50%, its long term debts would become manageable.