[Hugin]

It’s the new normal. Don’t expect it to change if Romney is elected. The alterntives are too politically damaging, and politicians always take the course of least resistance. That’s why Congress is happy to cede monitary policy to the Fed. Doing nothing and letting the Fed handle it lets them avoid making real cuts in spending or default.

[Theoria]

Of course. As if the Fed would/will behave any differently with Romney as pres.

[bert]

Once a desirable rate of inflation that includes wages and everything is established, the congress will be able to act.

The action will be stabilize the rate. The inflation/devaluation must continue at that painful but acceptable rate until the $$ amount of the debt is reduced to an acceptable level in the new inflated currency.

There can be some growth and revenue enhancing tax measures but the primary function in the debt reduction equation will be inflation.

The current fed action allows the bankers to get upfront earnings to makeup for the coming losses to inflation of outstanding loans and mortgages.

A well regulated inflation including COLA raises and wage adjustments will be tolerated. Retirement accounts in cash will suffer. Investments should be in a diversified portfolio. Betting on American industry will be a long term winning strategy. A little gold and real estate will ride the waves.

The unknown is, can there actually be a well regulated inflation?