Not only that, but we're not heading for it either. We're in a classic deflationary spiral. Sen. Grassley really needs to learn some basic economics since he's on a committee making important fiscal decisions for our country.
Voters should be very concerned about the lack of common economics knowledge by our elected officials. They're clueless.
“...We’re in a classic deflationary spiral...”
It’s all very confusing to me, because it seems like what the Fed is doing by selling so many bonds (and accumulating so much debt) would be very inflationary, even though, empirically, this does not appear to be the case. I don’t see how we can have so much deficit spending (and accumulated debt) without it leading to inflation, because it seems to me that at some point the debt will be so huge that it can only be managed by paying it off in highly inflated dollars.
I'm not sure who needs remedial economics, but...
SOME markets, such as housing, are experiencing deflation; overall, the economy is NOT.
We've got a real mess on our hands, and NO ONE knows for sure what's going to happen. If history is any guide, I'm betting on a Weimar Republic situation beginning sometime next year.
The advice to put your money into real estate, and commodities is prudent.