I commented before about how Obama doesn't understand freshman economics with his nonsense about creating competition in health care by making private enterprise compete with the government, (don't ask me to link it ... can't remember which post I said it in), but that was just peanuts compared to the moron Obama has appointed to run the Federal Reserve. I sat in front of the TV drinking my morning coffee, and watched Ron Paul ask Bernanke a pretty straight forward question. "What's your definition of inflation?" Now I remember covering this in high school economics ... I would have been about 16 or 17 ... it was my second to last year of high school anyway. That's an easy one Bernanke ... you can do it ... And Ron Paul, being the nice man that he is even gave the poor student a hint. "You've doubled the money supply. Does that have anything to do with inflation?"

Now previously I'd thought that Bernanke was a B- student. He tries hard, and while he's never going to be top grade material, he at least can get up to B level on a good day. Today, I realized that he's going to flunk the economics final exam. The short version of his answer? "Inflation is when prices go up." He didn't even try to moderate his answer by acknowledging that yes, money supply plays a role ... which, given the way Ron Paul posed the question, was an express disavowal that the money supply has anything to do with inflation. Mr and Mrs Bernanke, I'm sorry, but your son got an F this term. He really tries hard, but he just doesn't have what it takes. Has he ever considered a trade? I hear plumbers make good money.

[Update] AP reports that the man who doesn't know what inflation is

sought to assure Wall Street and Congress Tuesday that the Fed will be able to reel in its extraordinary economic stimulus and prevent a flare up of inflation when the recovery is more firmly rooted.
Ummm ... I'm not quite sure what it is, but I'm confident I can stop it at some point in the future [smile at teacher].
[Updated Update] I found the exchange on Youtube. The whole 5 minutes is interesting, but the part I have been talking about starts at the 4.45 minute mark.