Simit Patel

Money Supply: We're In Orbit Now

Money supply is stalled because banks aren't trusting each other enough to lend to each other. The toxic debt and bad banks need to be expelled from the market; this will restore trust. This would result in significant deflation.

Instead the Fed is trying to print its way out of this mess, and thus is choosing an inflationary depression rather than a deflationary one. This is a poor idea and will result in more economic destruction.