Fed TAPER Will Cause Massive Deflation Leading to HYPERINFLATION
January 30th, 2014
Stocks hit as Fed stays on taper course despite emerging markets
the Fed should try to preserve a buffer zone for the inflation rate
A healthy, well capitalized banking system and smoothly functioning capital markets are an important line of defense against deflationary shocks.
A money-financed tax cut is essentially equivalent to Milton Friedman’s famous “helicopter drop” of money
when inflation is already low and the fundamentals of the economy suddenly deteriorate, the central bank should act more preemptively and more aggressively than usual in cutting rates