Wednesday, March 17, 2004

Ominous, indeed

From Forex News: "An ominous prospect would unravel if the Fed finds itself between having to temper inflationary pressures and reviving the bland recovery."

If the Fed raises interest rates to ward off the dreaded inflation, it would likely dampen the tepid recovery. If it leaves the interest rate alone, while inflation charges on, it could fuel rampant inflation.

Greenspan, this may be your doing. You're so hell-bent on fueling the recovery with money borrowed at low rates that you're going to drive us into deflation, that is, inflation without growth, the worst possible economic scenario.


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