tomatden

Fiat Money and a Profligate Congress: A Bad Combination

I truly believe many of this nations problems can be solved with two words... term limits. If career politicians become extinct, I think our "tax and spend" dems and "borrow and spend" gop will also vanish. People will serve for a few years then go back to being doctors, lawyers, and engineers. The primary incentive will be to do what's best for the country, not what's best to get re-elected.

The Deflation Debate: Why This Time Is Different

I'd say it probably is true. How much longer can the dollar continue to strengthen? The longer-term supply/demand fundamentals are not good. Once the current dollar trend reverses in earnest, a wave of dollars will return to the US, chasing a shrinking amount of goods and services being produced by the shrinking US economy. Commodities could start to soar and gold could dramatically increase it's role as "real money" and also soar. Great article!

Can the Fed Really Just Print Money?

The Fed can create dollars, but cannot do too much about the velocity of the newly created dollars, which is the necessary component for inflation to take hold. But what about fiscal policy (borrow and spend) of the US govt? Take a govt sponsored infrastructure project for example. This type of project would create jobs and would temporarily increase velocity. This false signal to the economy could set the credit bubble back to "reflate."