“And, as I said in here a few months ago, the economy IS coming back because of the massive money supply growth over the past year.”
In other words, they have printed enough worthless money to devalue the currency and temporarily stave off a credit crunch.
>>In other words, they have printed enough worthless money to devalue the currency and temporarily stave off a credit crunch.<<
Yes, printing money will cause inflation, and the way they’ve been printing, it could be a doozy...on the order of causing double-digit inflation within a year or two, but no, there’s no danger of a credit crunch in today’s environment. Quite the opposite...people are sitting on their cash, not desperately trying to get cash.
What I said a few months ago was that Obama would be facing re-election during a rising economy due to all the money Bernanke has flooded the system with, and that the inflation would follow the election, not precede it. In other words, this works to his advantage. Hopefully, it won’t be enough to get him re-elected, however.
And his regulators are doing their best to counter any economic growth, offsetting some of Bernanke’s influence.