Fundamentals for massive inflation are in place. Enormous budget deficits and heavy government borrowing to meet unprecedented, massive budget deficits, have done that.
But the present recessionary doldrums, despite what the Washington cheerleaders say, will hold the huge inflationary consequences back only for a while. That is, until the economy recovers a bit more.
Despite occasional reassurances from government officials, there will be no way to unwind the debt build-up in an acceptable manner. Therefore, real inflation is inevitable
Unless we make huge budgetary cuts, soon.
No comments:
Post a Comment