Walker F. Todd, Research Fellow at the American Institute for Economic Research and former Federal Reserve official.
“To my knowledge, this is the first time since World War II, that any industrial economy, except for maybe Hungary, has tried to expand its money that much in a single calendar quarter; but traditional monetary theory teaches that, with a lag, it can be anywhere between six months to eighteen months typically, that money creation WILL catch up to you, observed by the public, in the form of a rising price level”, says Todd.
Arthur Laffer just wrote in the NY Times….
Get Ready for Inflation and Higher Interest Rates as he stated that in the horizon we face a:
grave economic crisis with a projected budget deficit of 13% of GDP. That’s more than twice the size of the next largest deficit since World War II… With the crisis.. comes the unfunded liabilities of federal programs — such as Social Security, civil-service and military pensions, the Pension Benefit Guarantee Corporation, Medicare and Medicaid – are over the $100 trillion mark. With U.S. GDP and federal tax receipts at about $14 trillion and $2.4 trillion respectively, such a debt all but guarantees higher interest rates, massive tax increases, and partial default on government promises.
Part 1
Part 2
