Federal Reserve Chairman Ben S. Bernanke said that he expects inflation to be “quite low for some time,” but that the Federal Open Market Committee will begin publishing its long-term inflation forecasts to promote transparency.

From its high of $147 a barrel last July, West Texas Intermediate Crude oil prices have crashed a cumulative 74%. That ranks as one of the worst absolute declines for any asset since the onset of deflation last July as investors dump most commodities, except gold, silver and several other soft commodities.

With food prices on the rise, the price of gold will drive. Martin Hutchinson of Money Morning says, “As gold goes up, it gets more popular and investors start piling into it…” Here are five ways to play bottom-basement gold.

While the rest of the world is grappling with the global slowdown, China is figuring out ways to exploit it.

Gold hit two historic milestones in 2008. First, in early March, the “yellow metal” hit its all-time high of $1,030 an ounce. Just three months later, the price of gold for December delivery had plummeted to $681 an ounce, a 21-month low and 33.9% drop from its record high. Most gold bugs were equal parts puzzled and broken-hearted.

Some of the valuations in today’s market are absurd, says Chris Mayer. Though market volatility means high risks in the short-term, now is the time to “plant the seeds of monster future returns.” Chris picks four deep value stocks with big upside potential.

BHP Billiton Ltd. (BHP) yesterday (Tuesday) received a formal complaint from the European Commission that detailed antitrust concerns about the mining giant’s proposed buyout of Rio Tinto PLC (RTP). Despite a sharp decline in commodities prices, BHP will likely make every effort to move on with the deal, which could mean selling some of its assets.

American consumers are feeling the pain both at the pump and in the grocery store. Meanwhile with real full-time unemployment rates climbing towards 10%, penny-pinching consumers are wondering just who is to blame.

Last year, China was viewed as the driver behind rising commodities prices.

Now the blame for spiraling food and oil prices is increasingly being laid at the door of Fed Chairman Ben Bernanke for cutting the fed funds rate to 2% and unleashing yet another wave of inflationary surplus liquidity.

The fallout is now being seen as India, China, the Philippines and Indonesia hike their own interest rates to rein in rising prices.

Consumer prices jumped 7.7% last month, down from 8.5% in April, but inflation there remains top of the list of economic concerns.

A strengthening dollar and a drop in oil prices caused spot gold prices to fall more than 2% today – its lowest level in a week, according to Thomson Reuters.

Dan Denning in The Daily Reckoning Australia doesn’t think this is a cause for concern: “After regrouping, shaking out the weak hands, and giving the dollar its due, gold is on the march again.