From QandO:
Arthur Laffer: “But as bad as the fiscal picture is, panic-driven monetary policies portend to have even more dire consequences. We can expect rapidly rising prices and much, much higher interest rates over the next four or five years, and a concomitant deleterious impact on output and employment not unlike the late 1970s.”
Remember, we’re being told by “experts” (*cough* Krugman *cough*) that we’ll be able to handle this with no problem, really, if we just manage it properly. A tweak here, a tweak there and bingo – no inflation.
Arthur Laffer: “The percentage increase in the monetary base is the largest increase in the past 50 years by a factor of 10 (see chart nearby). It is so far outside the realm of our prior experiential base that historical comparisons are rendered difficult if not meaningless. The currency-in-circulation component of the monetary base — which prior to the expansion had comprised 95% of the monetary base — has risen by a little less than 10%, while bank reserves have increased almost 20-fold. Now the currency-in-circulation component of the monetary base is a smidgen less than 50% of the monetary base.”
At what point do you see the might US Dollar Bill becoming worthless? What about the $100 bill?
Welcome to The Hope And Change.
Welcome to $15 gallon of gasoline.
Welcome to $10 gallon of milk.
Welcome to your monthly electric bill being $750.
Welcome to a basic Chevrolet costing $80,000.
Welcome to a double-wide trailer costing $450,000.
rising prices, higher interest, inflation, monetary base
