Quote:
Originally Posted by jimhcom
|
I agree that the "Recovery Act" money, along with TARP and the rest of the bailouts were only brakes to keep the car from going off the cliff as we continue the downward path.
THAT is a GOOD thing in that regard. For optimization -- it coulda/shoulda been applied to the bottom end more heavily as that actually does trickle up through the economy.
But with SO MUCH imaginary wealth evaporating out of existence by Real Estate "correcting"
to its true value -- I do not see how replacing some of that wealth in the form of currency necessarily points to inflation -- let alone Hyper-inflation.
This a full-blown Deflationary Depression. We can pump money into this hole and it just keeps going. It is not backing up and causing inflation. When the new re-ordered order of values stabilizes, if there is surplus currency causing inflation we pull the surplus currency back out via taxes and higher interest rates.