Tuesday, July 27, 2010

Trichet Challenges Inflationism

The Financial Times published the following article by Jean-Claude Trichet (Head of the European Central Bank)..cut and paste the link into your browser to read the whole story.

http://www.ft.com/cms/s/0/1b3ae97e-95c6-11df-b5ad-00144feab49a.html

Doug Noland at prudentbear.com has dissected it for you 2/3 down in the article linkrd above and the crux of his analysis is:
"Washington – or the states – can’t spend its way to fiscal recovery. Instead, we’re witnessing a fiscal train wreck. Our policymakers, economists, and pundits should read Mr. Trichet carefully and contemplate a course other than inflationism."

Click on the heading above and READ the whole thing...and ponder deeply.

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