Easy Money Whores Demand More Easy Money (NOW!)
...still with this deflation bullshit, let it go already. Deflation only hurts those in the business of money-laundering through debt creation (namely Mr Ben Shalom Bernanke) and will probably mean Krugman is out of a job. That can only be a good thing.
But here we go again anyway.
Chris Purcell via WSJ's The Source seems to think the easy money whores at the Fed could be a whole lot easier:
The trouble is that if monetary policy isn’t eased even more we could see inflation falling further as inflation expectations plummet. That outcome would become even more likely if outside events, such as the euro-zone sovereign debt crisis, led to economic stagnation overseas.
So, to avoid the doldrums of deflation, far more ‘quantitative easing’ will have to be aimed at the markets. The decision at the August meeting of the Federal Open Market Committee to reinvest the proceeds of maturing mortgage-backed securities held by it in long-term Treasurys was only minor tweaking. More forthright action will be needed.
Admittedly, stoking inflation is a dangerous game, but it is surely a lot more dangerous to let the economy slip into a deflationary spiral. In the end, maybe the devil you know—the inflationary one who brings some benefits—is better than the deflationary one you don’t. Those benefits would include low interest rates, higher prices for homes and other assets, and probably an export-stimulating weaker dollar.
Obviously there are downsides, but these still aren’t the ’70s and at this stage they shouldn’t stop the Fed from preparing to inflate the market, and start thinking about more quantitative easing.
Fuck it! Why be pussies about it? Let's just crank up the press and start firehosing Europe with dollars and cutting $10,000 stimulus checks for every American! Why stop there? Let's just keep the press running 24 hours a day and install a money-blasting hose on the roof of the Board so they can blast out fresh money all hours of the day!