The coming storm

Remember the good ol' Carter days of 12% interest rates and gas lines? Well the first indicators are just around the corner.

Cheng Siwei, former vice-chairman of the Standing Committee and now head of China's green energy drive, said Beijing was dismayed by the Fed's recourse to "credit easing".
"We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on Lake Como.
"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.

You can only artificially suppress the interest rates for so long before people will stop buying our debt and you will have to print money to cover it and this will cause rapid inflation. If you let the market set the price, you will have inflation as you borrow more and more, but at a slower rate. The only way to stop inflation and the devaluation of the dollar is to STOP BORROWING MONEY!
So Senator Scumbag can't buy votes with a shiny new road named after him, but at least our kids can buy a loaf of bread without having to lug around a wheel barrel of cash to do it.