Looking Ahead

The Bush-Obama approach to the crisis in the financial sector is to monetize existing debt and accumulate massive new debt that will likely also require monetization. The monetization threatens inflation, high interest rates, and depreciation of the U.S. dollar and loss of its reserve currency role. The accumulation of new public debt implies larger annual interest payments that could make future deficit reduction problematic. Clearly, the Obama administration needs to broaden its perception of the predicament to which financial deregulation and offshoring have brought the U.S. economy. ~Paul Craig Roberts

Naturally, then, our crack team of experts is busily combating non-existent deflation as most pundits warn against the menace of protectionism.