As most of you know, I am a Fed watcher and I particularly enjoy reading their research papers. This one is from the Federal Reserve of St Louis ( you can find this and other data/publications at http://research.stlouisfed.org ).
I posted this one because finally someone on CNBC used the "inflation" word. The "talking head" being interviewed pointed out that we must spend our way out of this recession and only governments are capable of doing it. We were advised not to worry about it for two reasons:
(1) Every Government is now doing this so don't worry about destroying the US dollar. I presume he means that every government is destroying its currency simultaneously therefore the net effect is zero. Oh boy....
(2) Any problems these government actions cause such as hyperinflation or currency devaluation can be fixed in later years when the world economy is on better footing.
How would you interpret those words? It sounds to me like:
(a) things are really bad,
(b) the cure will just about kill us,
(c) we will probably be ok (after all we always have been in the past).
Yikes!
Merry Christmas
Tedbits
Ted:
ReplyDeleteLet me know if you see any after Xmas sales on wheelbarrows. Given the stellar job the Fed is doing, I might need one to buy a loaf of bread in the next 12 months.
-Jerry G.