Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
So the problem is debt deflation, not inflation.

Granted, any attempt to rescue the credit system for the benefit of the "real" economy will make good on some (most?) of the speculative (hence inflationary?) asset bubble of the past five years, but I believe that is necessary.

A "Second New Deal" would ensure that measures are put in place to ensure the impact of inflation on the working poor, who had no part in causing this problem, is minimized, and that those responsible for the financial asset bubble pay the cost of that social support.

We have met the enemy, and he is us — Pogo

by Carrie (migeru at eurotrib dot com) on Wed Mar 5th, 2008 at 06:25:56 AM EST
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