The last time we had a dollar crisis (in the '70s) we rescued it by raising interest rates to 20%. We don't have that option this time around since we could not afford the interest on our debt. So far, price inflation has been limited to bubbles that show up in the stock market and real estate and their pop produces deflationary forces. We will have our broad inflation when public perceptions change. In the mean time the Fed and the Federal Government will use monetary policy to transfer wealth, since that is all that they can really accomplish, and is what the system was designed to enable in the first place.
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