Bernanke assaults the dollar

[hi_im_god]

i'm still struck by all the posts about inflation when the immediate threat is deflation.

if the government did this in a growing economy it would be inflationary. but the economy isn't growing. in all likelihood the world economy will shrink in 2009 for the 1st time since ww2.

i don't know of more than a small minority of economists that isn't behind this approach. they've cut the fed funds rate as low as they can. this is the next logical step.

i saw today that core inflation in february was 0.2%. that's after fed fund rates were cut as close to zero as possible 6 months ago (something that would be hugely inflationary in a growing economy).

stop worrying about water damage. we need to put the fire out.