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Politics : View from the Center and Left

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To: Bread Upon The Water who wrote (103915)	2/11/2009 6:39:07 PM
From: Paul Kern	Read Replies (2) of 541990

The latter will sustain demand for a while but eventually the currency cheapens (rampant inflation)(as more and more dollars chase the same things) and the economy collapses. More or less correct. You get an "A". We have to trust Bernanke to sop up that excess money as the economy improves and I'm not sure that he the backbone to do the job before we are saddled with stagflation. It took Volker to get the job done and, by then, it was so late in the cycle that it plunged us into a 10-year recession.

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