The current macroeconomic fear is deflation, not inflation. Inflation can be cured with monetary policy or fiscal policy, but deflation can only be cured with fiscal policy because interest rates are already zero. We should be afraid of the $0.10 loaf of bread. A little inflation could help a lot.

Dave C,
I hear it's going to be hyper-inflation followed by deflation. How can you pump this many trillions out of thin air without inflating something?
My understanding is that fiscal policy can control inflation ordinarily, but nothing about what we're facing here is ordinary. One ominous thing I heard is that the hyper-inflation began in May, and when the banks start lending again, that is when it will really take off.
Again, I'm not saying this as an expert. I preferred not knowing about these suits and their insane greed. You know, it's not even greed anymore. They are grabbing more with absolutely no way of improving the stuff they can buy or the quality of their lives. It is just a sick addiction like cocaine, etc...a pure power rush leading to nothing but misery for billions of people.

I don't think its going to be inflation actually. I see Jimmmy Carter from 30 years back when Volcker got a whiff of inflation and pushed the prime up to 15%+/-.

Regardless, spending like crazy (or in effect running up a deficit) will catch up sooner or later with us.

I hope you guys are right, but how does a deflation scenario work with oil? The world doesn't want our currency - won't it take more for them to sell us oil?

Hmm, unemployment down; tax receipts down.

Solution: raise taxes!

You know it's coming, so don't be shocked when it happens. Hell, Oregon is on the leading edge of this policy!

It was Jimmy Carter who thought a little bit of inflation is good for the economy. It took Jimmy Carter to get us Ronald Reagan, just like it took GWB to get us Barack Obama. I predict $20 bread by January 20, 2013.

I think it's already on offer at Ken's.

If Carter thought inflation was good, why did he pick Paul Volcker for the Fed and let him (Volcker) shoot interest rates to 15% in an effort to arrest inflation?

Maybe Volcker's predecessor G. William Miller was trying to re-write history, but he claims that Carter pressured him to increase the money supply. According to Miller, "Carter seemed to think that some inflation was good for the economy. It kept people working and inflated asset values. It was good for debtors. And Mr. Carter promised to hold down spending in the interim, though this was never to be."

Carter never wanted Volcker, but appointed him under pressure from Wall Street.

Let's see - we have high unemployment, with a couple million people soon to have exhausted their unemployment; the government bailing out and running banks, auto and insurance companies, jobs NOT coming back anytime soon; small businesses of all types simply folding up and going away; and a couple of huge stimulus packages that have done almost nothing for the economy - and the nutsacks in DC are wondering why tax receipts are down. I predict the spend-a-holic in the White House will be a one term wonder just like that loser Jimmy Carter. Don't think it can happen? Think again. How many people even knew who Barak Obama was 30 months ago?

Buy wheat futures....learn how to make bread.....grow your own food....

All they gotta do is shut down the war machine and there will be plenty of tax money to go around!

Of course that won't happen will it?

How bout legalizing drugs and taxing the DUCK out of them?

Why shouldn't the govt have that money instead of the underworld?

NOPE, SORRY, CAN'T DO ANYTHING EVEN RESEMBLING INTELLIGENT.

Regarding a previous comment about nobody wanting our money, see this article, hopefully the guy writing it is wrong!

WE DON'T WANT YOUR STINKING DOLLARS

I have 22 year old sour dough starter...
makes great pancakes and bread too.

I predict Earl-the-Pearl will vote for a congressional pay raise.

Some people think this economy is improving. I am not so sure.