Senator warns of hyperinflation rivaling the 1980s

thehill.com ^ | August 25, 2009 | Michael O'Brien

[Palin Republic]

Grassley, speaking about the renomination of Federal Reserve Chairman Ben Bernanke to a second term as head of the Fed, asserted that Bernanke's ability to hold down inflation would be the metric by which the Fed's success would be measured.

"We won't know for a year if he's done a good job so far, because he shoveled money out of an airplane to save banks and the financial system," Grassley said in a conference call with Iowa reporters. "But shoveling money out of an airplane to solve problems can be inflationary — in this case, hyperinflationary — if he doesn't start mopping up some of the money that's out there."

Grassley, the ranking member of the Senate Finance Committee, said that inflation as a result from government spending on bailouts could result in inflation rivaling rates in 1980, when it hit a peak of 13.5 percent.

[Palin Republic]

How many trillions can Helicopter Ben drop on the economy before it overheats, and melts into a puddle?

[what's up]

If Bernanke can keep inflation tame, and we return to growth within a couple of quarters, I am willing to say his policies may have helped us out of what could have been a much worse-case scenario.

Ozero's deficit spending on the other hand...

[Centurion2000]

If Bernanke can keep inflation tame, and we return to growth within a couple of quarters, I am willing to say his policies may have helped us out of what could have been a much worse-case scenario.

Thank you for demonstrating that you have no freaking clue what's going on in the financial world at this point.

The sh*t is about to really hit the fan in the next 6 months.

[Red Steel]

I see GrASSely couldn’t say the Carter years.

[GonzoGOP]

Introducing the new OBAMADOLLAR.

[BenLurkin]

Inflation in the 80s was bad but it wasn't, I don't think, “hyperinflation”.

[EnquiringMind]

Good, hope so. I am so afraid of the market, I long for high interest rates. My father made a bundle in CDs in the 70s-80s.

[Red Steel]

The sh*t is about to really hit the fan in the next 6 months.

People should get your finances in order because hyperinflation under Obama is coming.

[counterpunch]

I assume he's talking about hyperinflation in the Soviet Union in the late 1980s.
 

[Red Steel]

Arrg.

your = their

[counterpunch]

I assume he's talking about hyperinflation in the Soviet Union in the late 1980s.
 

[DallasDeb]

You don’t think double-digit inflation is hyper?

[nascarnation]

My father made a bundle in CDs in the 70s-80s.

are you sure?

or did he just come close to matching the rising cost-of-living?

[Moonman62]

Inflation in the 80s was bad but it wasn't, I don't think, “hyperinflation”.

I agree. Republicans are having a hard time coming up with ideas of their own, so they've resorted to exaggeration and finger pointing.

[GOPJ]

...shoveling money out of an airplane to solve problems can be inflationary ... Like, duh...

[envisio]

Throwing money at it?

I thought that was the way you fix and maintain a bass boat.

[GOPJ]

...shoveling money out of an airplane to solve problems can be inflationary ...

Like, duh...

[dinoparty]

I’m just waiting for the dramatic interest rate spikes by the Fed combined with continued inflation — the worst of both worlds.

[Mark17]

I assume he's talking about hyperinflation in the Soviet Union in the late 1980s.

Or Germany in the 30s. I think this is the kind of inflation where it takes a wheel barrow full of money to buy a loaf of bread.

[dinoparty]

Yes, sink as much money into your home and other physical assets as possible. That’s the only way to hedge against such inflation.