icandoitdon

The Fed's Big Gamble

"However, if the economy starts to stabilize, the Fed will have to just as aggressively drain this liquidity out of the system. It will have to do so when the economic picture is at its bleakest (we are not there yet -- not by a long shot). If it doesn't, the risk of very high inflation (much higher than Ford/Carter levels) is huge."

there is a simple but fundamental truth here. inflation is not a hindrance to a debtor nation...indeed, inflation is the debtor's friend. now you tell me....do you really think our federal reserve has any intention of reversing it's easy money policies that they and the treasury have deemed our economic lifeblood?

our country can't seem to function without cheap credit for everyone...deadbeats included. unless forced to reign it in by our foreign creditors, cheap money and easy credit policies are here to stay.

china and japan will have more to say about our economic future than our federal reserve.