The man who made his bones about the Great Depression in writing his Princeton thesis is losing his intestinal fortitude. In his paper he summarizes that FDR could have solved the the Great Depression if only they had inflated the currency more.

Today Bernanke back tracks on his own conclusion by stating:

Federal Reserve Chairman Ben S. Bernanke said today that large U.S. budget deficits threaten financial stability and the government can’t continue indefinitely to borrow at the current rate to finance the shortfall.

Even Bill Gross is becoming a skeptic of late telling listeners to diversify away from the U$D before the banks do.