[Peace-discuss] Why the Fed is Steering the Economy Into Deflation

[David Green]

http://www.counterpunch.org/whitney07152010.html

"Inflation is not a problem. The economy is in a depression. The historic low 
yields on Treasuries indicate an appetite for high-quality liquid assets. The 
Fed should satisfy that need by issuing more debt, selling more Treasuries, 
increasing inflation expectations. That would increase spending and pull the 
economy out of the doldrums. Instead, Bernanke preaches austerity, because the 
real objective is political--dismantling Social Security and other popular 
programs. Bernanke (a Republican) has aligned himself with the GOP and Wall 
Street who seek to bury Obama in the midterms by trashing the economy, keeping 
unemployment high, and increasing the prospect of another vicious downturn."


      
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