Straight talk about the Economic Armageddon Plan.
Without boring you with the details of why I believe these to be factual, I’ll just give you the list. There is only one way the expense of this bill can ever be paid. Inflation. We are facing massive inflation at some point down the road if this bill passes as it stands now. Just think about Social Security. We’ve been fretting over how to | Read More »
Conjecture on Reversing Deflationary Expectations.
Civil Truth posed some questions recently, and in attempting to answer them I developed this blog entry. His questions were about today’s deflationary pressures and inflationary expectations. I don’t think we have deflationary pressures and inflationary expectations. We have primarily deflationary “pressures,” creating deflationary expectations today. I don’t think our fiscal and monetary policies are at odds–they are both inflationary at the moment, about the | Read More »
If we can’t cure the economic cold, maybe we should bring on economic pneumonia.
You remember the old joke to that effect? We know how to cure pneumonia? Blackhedd recently provided an explanation of how “a zero nominal interest rate might correspond to a real interest rate that is hundreds of basis points higher” if expectations are for a deflationary period. I took it to mean that since the original principal must eventually be repaid, even a zero interest | Read More »