Carl Spackler

Government's Panicked Response to This Economic Crisis

I am shocked by how many people think that this entire economy will instantly go from deflation to inflation in a matter of months. Everyone usually pulls out the old line that they will just start the printing presses and presto - we have inflation. Japan tried for over 10 years to defeat delation. They used all the same tricks with near zero interest rates and quanitative easing tricks, yet they were still firmly in the deflation camp 10 years later. Economies are like big battleships - they turn very very slowly. The delation momentum is very strong and it could take years to break it. Same was true of the 70's and inflation - how long did that take to defeat? Answer is nearly 13 years. Wake up America - this problem does not have some 6 month solution!