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  • We’re Not Threatened by Inflation but by Depression

    12/07/2009 1:20:13 AM PST · by advance_copy · 15 replies · 1,259+ views
    The Daily Reckoning ^ | 12/07/09 | Bill Bonner
    So, central bankers are beginning to wonder if the US can pull off "another Volcker." Even Paul Volcker himself, who is still alive, doubts it. Today, too many people owe too much money and too many political favors. Put up rates to 18% today? Unthinkable. Cut 10% off government spending? Impossible. But don't worry about it. Now, we're not threatened by inflation...but by depression! It's fighting the depression that makes people worry. Smart investors and shrewd central bankers are afraid the depression-fighters will go too far...that they don't really know what they're doing. Ben Bernanke is up for re-appointment. "Bernanke...