huskerbob

Even More Reasons to Worry About Inflation

Airelon, I can tell you feel pretty strongly about deflation. But don't count the Fed out. As Tony helpfully pointed out, the Fed head strongly believes in inflation. And looking at its long and illustrious history, the Fed was able to devalue the dollar 95%. Furthermore, the working policy of the Fed is to maintain a targeted rate of inflation. Which is not zero.
Don't expect them to be too hasty with any rate hikes.

Even More Reasons to Worry About Inflation

Yes Cetin, 4% should be adequate to curtail any future inflation. As shown by Volker during our last serious bout with inflation... uh, wait a sec; are you being sarcastic, or did you mean 20%?
If you read the writings of Greenspan or his protege, Bernanke, you will see that they feel it is necessary to stop at nothing to spur spending and inflation. They will purposely destroy people's confidence in the value of the dollar to get them to spend their savings. They explicitly state this in writing! I am assuming that this applies in principle to the massive reserves now held by banks, and the nascent rise of savings among the hoi polloi. Inflation or bust! Or both, more likely.