To: dirkdavies68
Welcome to FreeRepublic.
My take: Sooner or later the Federal Government (and many State governments) will conclude that a burst of hyperinflation will be in their best interest.
They want to pay back debt with cheaper dollars. They want to pay Social Security and government pensions with cheaper dollars. (They figure that COLAs will not, indeed cannot, keep pace)
2 posted on
01/10/2006 5:21:51 PM PST by
BenLurkin
(O beautiful for patriot dream - that sees beyond the years)
To: BenLurkin
Thanks for the welcome, Ben.
My question is that why do we assume that the Fed can produce inflation at will? Japan was stuck in deflation for 13 years - maybe they're out now, but maybe not.
It seems what Nystrom is saying is that deflation is more of a psychological thing than a money thing, and the Fed has realized that, so they're acting accordingly - i.e. messing with our heads.
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