sundrenched

The Fed's Bubble Trouble

I'm still on the fence as to whether deflation or inflation is the greater danger. Some things I'd like to hear the author's opinion on are:

*velocity of money (specifically, does money printing in the face of collapsing money velocity really cause inflation?)

*paradox of thrift: would his prescriptions of non-intervention lead us to there? To take the island analogy further, once the American stops consuming, will the Asians increase their consumption, or become even more miserly in their expenditures, with collapsing GDP as a result? The early signals are for the latter.