24 January, 2011

Why inflation is on the radar screen - The Globe and Mail

You cannot double the money supply (as the US and most western countries did during the recession) without there being serious consequences. I fear that the US will not aggressively address this scourge, seeing inflation as a means of reducing the real value of its debts to foreign lenders. If they follow that path, we will probably see a return to the inflationary cycles of the 1960-80's. I really hope that I am wrong, but I fear interest rates will eventually rise to try to wring inflation out of the system, as that has proven to be the only effective way of beating it in the past.

Why inflation is on the radar screen - The Globe and Mail

No comments:

Post a Comment

Followers of this blog:

Blog Archive

Google Analytics