An excellent article here by the Dollar Vigilante. As everyone waits...and waits...and waits...for an economic recovery, this article explains why there will be none. There are also very good links if you have some time.
"Raising rates, which is the only thing that can squelch the impending
inflation that is currently building, is not an option this time around.
This time around the choice will be allowing interest rates to rise
dramatically and bankrupting the government or keeping rates low until
the dollar hyperinflates into worthlessness. Ben Bernanke has kept
interest rates at 0% since 2008 and has publicly stated that he will
keep them at zero until 2014. Ben Bernanke has drunk of the Keynesian
koolaid so deeply and for so long that he will keep rates at zero until
the economy recovers. The thing is, the economy can never recover until
rates rise. It’s a Catch 22... and it all ends in tears.'
No comments:
Post a Comment