Saturday, October 31, 2009

Green Shoots and Worries about Inflation

The following graph should lay any of those ideas to rest:



The reality is that the flow of credit is still nearly dead. You do not get a vibrant, growing economy when credit is not flowing.

All those right wing nuts who worry about "inflation" need only look at this and realize that there is no competition for funds driving interest rates higher. Sure a lot of dollars have been dumped on the economy, but those are being sucked up and held. This will be a potential problem in the future, but right now the patient is on his death bed, so it is a little early to worry about how to deck him out for a wedding.

Here's something that should cheer you up...

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