The Fed faces two choices

Daily Reckoning/Bill Maher

Repost from 2-16-2021

graphic image of a wheelbarrow full of green bags of money“Deflation stacks additional weight upon the shoulders… further encumbers the back… and buckles the knees. Recall, debt’s real value increases under deflation. Inflation, meantime, eases a man’s load. Debt’s chains weigh lighter upon him. He can get on… and move ahead. Hence the Federal Reserve’s mania for inflation. It quickens the pace of commerce. It eases debt’s burden, public and private.”

USAGOLD note:  With that as his premise, Maher lays out what he sees as the likely outcome – the two choices available to the Federal Reserve. “The show,” he concludes, “will continue until it cannot.”

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