FED Lunacy

GAH! The FED has decided to try to inflate our way out of the Great Recession.

The decision, which takes the Fed into largely uncharted waters, is aimed at further lowering borrowing costs for consumers and businesses still suffering in the aftermath of the worst recession since the Great Depression.

What a load of crap.

We’re in a liquidity trap. Interest rates are effectively zero and unless someone wants to pay me to borrow it can’t get any cheaper.

This will go straight into increased prices for commodities, raising input costs across the board. Inflation is already starting to show up in food prices and it will drift into other things in the coming months.

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One Response to FED Lunacy

  1. George says:

    I predicted this. I think the inflation strategy is less about lowering borrowing costs and more about wiping out the existing debt. Hyperinflation will wipe out both debt and savings. Of course, that’s how shooting wars get started.

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