Why an Outbreak of Inflation Isn't Likely - WSJ.com
This is about the most hollow article I've seen on inflation.
The only focus is on the demand side. Unless something is done to change the anti-business, anti-investor fiscal policies of the country (at both the local, state and national levels), the supply side in the US will continue to be in decline.
Yes, that will mean fewer and fewer jobs created and additional jobs lost; but, at the same time, with a declining dollar (as money is printed to try and overcome fiscal drag), the cost of imported goods will go up.
If there wasn't the huge fiscal drag on the economy, there would be some domestic replacement but that will really require the fiscal policy changes that are problematic at best as they seem utterly opposed by (and not even comprehended) by the President and the left wing of his party.
The prognostication of a few years back to see an inflationary depression is clearly still on the table based on over-spending, over-taxing and over-regulation by government.
Wednesday, November 17, 2010
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