A Snow and a shake, please!
Last night, US Treasury Secretary Snow was doing what all recent holders of his office have done - namely, he was blaming the rest of the world for America's self-inflicted woes and trying to get them to inflate a little more as an offset.
This is what we could call the McDonald's school of economics, as is explained here
Comments (1)
Jim Bradley
Sean -- any idea when this will break? The Fed can keep the game going a long time by finding new "markets" for the dollar and by oscillating the disinflation and reinflation - but it seems like every cycle is putting us closer to the "accept your medicine" or "hyperinflate". Now that consumption goods are rising, I expect it's catch-22.
The market is going to have the last laugh. But over the interim, deflation is very nearly a pure political choice, barring some major unforseen cross-collateral catastrophe (even then, it seems like temporarily validating all claims until it could be sorted out would hold the line). Just need a leading indicator of the winds of change ... any ideas?
Published: June 29, 2005 11:56 AM