Reply #64: It also shows why paying down the debt is next to useless. [View All]

They has been such a gigantic destruction of demand that even these record trillion deficits aren't enough to weaken dollar & push inflation higher.

In the absence of credit markets responding to growing the deficit it is not a good "bang for the buck" to pay down the national debt or try and cut the deficit.

My fear is more like 2013. Economies is recovery and the combination of ultra high liquidity combined with massive deficits means a real pickup in economy results in a significant spike in inflaiton.

Kinda like pouring gasoline on coals all it takes is a spark and woosh. The question is can the Congress and Fed both be responsible and quick in responding to get inflation under control? That is the trillion dollar question for 2013-2015 timeframe.