Larry, "Shock And Awe" Is The Cause Of Rising Inflation
You know inflation is bad when even Larry Kudlow expresses worry about it. He also describes one way in which inflation harms the economy, by raising the de facto taxation of capital income as capital income is taxed based on nominal gains. So, even assuming that inflation do not reduce real returns before tax, it will mean that people will have to pay taxes for capital gains which are just inflation.
He finally calls for Bernanke to be replaced by someone who cares more about inflation.
Well, so far so good. Yet Larry fails to mention just how he thinks the Fed should have acted differently and he fails to admit that it is precisely Bernanke's "Shock and Awe" policy that is responsible for the decline of the dollar and the acceleration of inflation. This is to say, he fails to admit that it is the policies he has recommended and praised which are responsible for the inflation he now worries about.