Sunday, January 04, 2009

What Would Warren Do?

I hate to bash Fed Chairman Ben Bernanke, but I'm going to for a few pages. Here's the deal. The current economic threat is screaming for an aggressive inflation solution. Inflation comes from the Fed. Forget about the inflation the Fed has caused over the past 90 years, and the doubling of the money supply to goose markets for the past eight. A lot of that was dead wrong, a theft of our children's future, coming at an unnecessary time. However, when economic crises hit, the government must inflate. Must. Aggressively, preemptively, not reactively, or else calamity will strike, deflation will result, a black hole sucking until depression hits. It is a lot easier to stop inflation during boom times than to reinflate an economy during a major bust. Japan taught us that. Ironically, this is supposed to be Bernanke's strong suit. read more


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