Don't Shout for Operation Twist - Barrons.com
It is evident on Bloomberg now for weeks that there is the feeling that 'inflation' as noted above can be benign. But like all things that history says are too good to be true, while housing may be bailed out, everyone has to be ignoring the history of the 1970's and 1980's.
We know there has been a government bond and interest rate bubble building, but, with every utterance, the Keynesians shown their utter lack of understanding of realistic economic principles.
They think they can encourage a revival of the economy by flooding entitlement money. But, they do everything in their power to make producers realize the government is out to get them. They just don't see it!
A visit to Europe shows what union-centric, socialist policies do. But, closer to home, there is the UAW. As Obama would like to make the US economy into the image of what the UAW would like to see - high union wages, a closed union shop, etc. - he fails to realize that the UAW brought down General Motors and forced it into bankruptcy.
Private sector taxpayers under the tax gun of government and the borrowing capacity of these taxpayers and the printing press of the Federal Reserve bailed out the UAW.
If the Fed is left to have to bail out the entire country - just think Zimbabwe.
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