THE BLACK KETTLE

Proverbs 21:30

Why Inflation May Explode When Business Revives

by Thomas E. Brewton:

The Fed has stupendously expanded the monetary base. When interest rates begin to rise and banks begin to lend to consumers and businesses, the monetary stock will balloon and consumer and producer prices will soar.

The alternative is the Fed’s draining trillions of dollars of excess reserves from the banking system, raising interest rates to such high levels that the economic recovery will be choked.

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June 29, 2011 - Posted by | Uncategorized

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