http://neveryetmelted.com/2009/06/12/thanks-to-government-americans-14-trillion-poorer/ The essential American soul is hard, isolate, stoic, and a killer. It has never yet melted. -- D.H. Lawrence Sat, 20 Mar 2010 12:53:38 -0700 http://wordpress.org/?v=2.8.4 hourly 1 http://neveryetmelted.com/2009/06/12/thanks-to-government-americans-14-trillion-poorer/comment-page-1/#comment-138940 Scott D Fri, 12 Jun 2009 13:13:03 +0000 http://neveryetmelted.com/?p=6042#comment-138940 There are only two possible outcomes here. Either the Federal Reserve continues to inflate the money supply (in which case there will be rampant price escalation like the run-up in oil that we are seeing right now) or they will drastically reduce the supply of money as did Paul Volcker (in which case there will be a further contraction of GDP, as there was in the early 80s). Since it appears that Ben Bernanke is lobbying for reappointment by the President next year, I wouldn't bet very much on the second possibility. There are only two possible outcomes here. Either the Federal Reserve continues to inflate the money supply (in which case there will be rampant price escalation like the run-up in oil that we are seeing right now) or they will drastically reduce the supply of money as did Paul Volcker (in which case there will be a further contraction of GDP, as there was in the early 80s). Since it appears that Ben Bernanke is lobbying for reappointment by the President next year, I wouldn’t bet very much on the second possibility.

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