Inflation: The Last Gasp of the Obama Economic Crisis

August 3, 2010 04:26

Inflation is the inevitable ending of this awful economic crisis. The only questions are how much and when.

By Monty Pelerin at American Thinker

A rising number of supports champion inflation as a salvation strategy. Richard Russell in a recent newsletter provides the rationale (emboldening by Mr. Russell):

In my opinion, the US MUST default on its debt. There are two ways to default. One is simply to renege on the debt … The other way to default on the debt is to inflate it away. I’m absolutely convinced that this is the path that the US will take. If the US inflates enough, then over time (many years) the devalued dollar will tend of reduce the power of the debts.

Mr. Russell lived during the Great Depression and has been involved in the financial world ever since. His experience and observations are valuable. The desperation of our current economic situation should be apparent when default is presumed the only option. The idea is hardly unique to Mr. Russell. Anyone who has studied the numbers knows the mathematical impossibility of paying off the debt.


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