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Get Ready for Inflation and Higher Interest Rates


Get Ready for Inflation and Higher Interest Rates – WSJ.com.

The bottom line in this opinion piece, we will have to deal with a recession (yes, on top of the current one) or run away inflation.  It’s inevitable.  The math of the current administration guarantees one or the other.

I still have hope but it would require the administration to completely change its agenda, political beliefs and actions……  Hope and change.  The article is summed up with the last paragraph.

In addition, a rapid contraction of the monetary base as I propose would cause a contraction in bank lending, or at best limited expansion. This is exactly what happened in 2000 and 2001 when the Fed contracted the monetary base the last time. The economy quickly dipped into recession. While the short-term pain of a deepened recession is quite sharp, the long-term consequences of double-digit inflation are devastating. For Fed Chairman Ben Bernanke it’s a Hobson’s choice. For me the issue is how to protect assets for my grandchildren.

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