NickLaudani

46.
NickLaudani
Boston,Ma.
May 29th, 2009
8:05 am
According to you "the Fed is just buying debt from the government and private sector". But buying these items from themselves or others must have a cost which also will need to be payed back in some manner. The more stuff the Fed buys while hugely in debt can only mean at the very least higher interest rates! Perhaps inflation is the wrong word. How about the real danger of a devalued dollar or more specifically significant reduction in our buying power. O how bout the factual discussions from other huge countries that the Dollar is starting to look risky. Which will further de-value our Dollar.IT might by definition be inflation but it will sure feel like that. Further more I find a flaw in your reasoning that we should not worry about going into 100 % debt of GDP as we have done so in the past.Things are different now. Back in world war II we had the biggest industrial or production based economies in the world. What do we produce now? Other than articles like this, that attempt smoke and mirrors. No this government binge will not bring property. We need to stop borrowing and starting producing. Otherwise it makes perfect sense to be concern