March 29, 2011 Reading Time: < 1 minute

“One would hope that the supposed “great minds” at the Fed and in academic economics would better understand inflation and its destructiveness, but that is not to be. First and most important, the lack of inflation is not the enemy of the economy. The economy does not remain in recession because government is not debasing money quickly enough, no matter what they say at the Fed. Instead, the economy is in a downturn because government and Fed policies recklessly created two financial bubbles within a decade. Those bubbles led to massive malinvestments that ultimately proved unsustainable, yet the federal government the past few years has tried to stimulate the economy into recovery via tax rebates, public works, and bank and auto industry bailouts, not to mention massive intervention in the mortgage markets, thus preventing the needed economic liquidation and realignment needed for the economy to recover.” Read more.

“Does the U.S. Economy Need Inflation?”
William L. Anderson
The Moral Liberal, March 28, 2011.

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