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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Tenchusatsu who wrote (465453)3/20/2009 11:49:31 PM
From: brushwud1 Recommendation  Respond to of 1573888
 
I think good old Keynesian stimulus is the right medicine now. Just print $1T and drop it out of airplanes. But these bailouts seem un-American to me.



To: Tenchusatsu who wrote (465453)3/21/2009 6:18:57 PM
From: tejek  Read Replies (1) | Respond to of 1573888
 
Z, > Deflation is more of a concern than inflation right now.

That's very short-term thinking. When the bottom forms in the economy, the massive debt and the spending spurred on by entitlements are going to cause a huge increase in the money supply without any increases in productivity. Inflation is a real concern.


Then you slowly raise the interest rate to reduce the flow of liquidity. Much better to be dealing with inflation than with deflation.

Inflation is like getting the flu or pneumonia....serious but rarely deadly. Deflation is like cancer....frequently fatal.