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Bernanke & money printing

Fed Chair Ben Bernanke describes quantitative easing as 'not printing money,' but more money is going into circulation.

Manuel Balce Ceneta / AP / File
Federal Reserve Chairman Ben Bernanke (second from left) attends the unveiling of the $100 bill's new design at the Treasury Department in Washington on April 21. Dr. Bernanke has said that quantitative easing is not the same as printing money, but he acknowledged last year that it's a good approximation.

Ben Bernanke says that "we're not printing money. The amount of currency in circulation is not changing. The money supply is not changing in any significant way".

Actually, according to his own statistics department, currency in circulation is up by 6.4% in the latest 52 weeks and by an annualized rate of 10.1% in the latest 13 weeks.

Overall money supply, is closer to the truth in terms of yearly change, as it is only up by 1.7% in the latest 52 weeks. During the latest 13 weeks however, it is up by an annualized rate of 9.1%.

So while Bernanke's statements was partially true with regard to earlier this year, they are inaccurate with regard to the last few months.

Finally, don't miss the below clip where Jon Stewart demolishes Bernanke and his money printing statements and actions in a very effective and hilarious way:

[Editor's note: Clip available at TheDailyShow.com.]

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The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. This post originally ran on stefanmikarlsson.blogspot.com.

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