http://neveryetmelted.com/2008/12/21/fed-busily-printing-money/ The essential American soul is hard, isolate, stoic, and a killer. It has never yet melted. -- D.H. Lawrence Fri, 25 May 2012 12:39:53 +0000 hourly 1 http://wordpress.org/?v=3.3 http://neveryetmelted.com/2008/12/21/fed-busily-printing-money/comment-page-1/#comment-134383 Scott D Sun, 21 Dec 2008 14:43:00 +0000 http://neveryetmelted.com/index.php/fed-busily-printing-money/#comment-134383 The federal reserve and the Bush administration have adopted the Churchillian attitude that inflating the currency is the worst possible monetary course except for all the others. They may actually be correct in that judgment, but the result will surely be a huge spike in inflation within the next 2-3 years as money velocity accelerates and the financial markets recover. At that point, they will face the sort of situation that the Carter administration did: whether to tank growth and asset inflation to foster stable money or to continue spiking the punchbowl. We know what they opted for. The federal reserve and the Bush administration have adopted the Churchillian attitude that inflating the currency is the worst possible monetary course except for all the others. They may actually be correct in that judgment, but the result will surely be a huge spike in inflation within the next 2-3 years as money velocity accelerates and the financial markets recover. At that point, they will face the sort of situation that the Carter administration did: whether to tank growth and asset inflation to foster stable money or to continue spiking the punchbowl. We know what they opted for.

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