Why Inflation Hawks Should Stand Down - WSJ.com

Why Inflation Hawks Should (or maybe they shouldn't) Stand Down - WSJ.com:
"Hmmm... as I recall, in wartime, when goods are in short supply (I assume money also), then prices go up.

Not that we are in wartime, however, as noted in this article, with a shortage of credit, the lifeblood of production is in short supply - i.e. implies less production. (Let alone Obama fiscal policies that are anti-growth, anti-jobs, anti-business.)

The government is borrowing and at some point will have to either pay higher rates to get the money from the increasing reluctant lenders or it will have to turn to the Fed for the money.

When money is borrowed, I recall the old saw that it was there because someone decided to forgo current consumption for future consumption. If the money doesn't represent someone producing something and then saving the rewards for that production, it can only come out of thin air (i.e. printed by the Fed).

In both of the above cases, it would appear that there are inflationary drivers.

Obama and his supporters are all like spenders with a credit card they think has almost no credit limit. As most Americans know or have known, credit card interest rates and minimum payments can really crimp a family budget.

Obama ignores these warnings because he first decides who in the country is deserving of having the government give them things they want and can't afford on their own (i.e. the beneficent father figure) and then just uses Treasury financing to pay for these benefits (the old Democratic credit card).

Let's just jump to say 'Hello California!' to see how this type of spending brought low a great economy.

It's true California hasn't seen prices go up; but, then again, it does have a Federal Reserve!"