Richard Bell: Beware of Zimbabwe-style inflation
Beware of Zimbabwe-style inflation
I should have paid more attention in my college economics class because today’s economic news has me completely baffled.
Nine years ago, conservative economists, including recent Fed nominee Stephen Moore, were calling for deep budget cuts and increased interest rates to combat double digit unemployment and the worst economic crisis since the Depression. All that spending would surely result in Zimbabwe-style inflation. Conservative senator Orrin Hatch lamented, “Trillion dollar deficits as far as the eye can see.”
Fast forward to 2019 — in the midst of what the president and his supporters have labeled the greatest economy ever — and Stephen Moore and the same conservatives are now calling for increased spending (especially military) and steep interest rate cuts from the Fed.
Even more confounding, the Fed chairman appointed by the president is now an enemy. Seems I need to renew my economic studies. In “alternate economics” anyway where alternate facts may shed light where there is now none. Because, well, with low unemployment and tax cuts that were supposed to pay for themselves, there are still trillion dollar deficits as far as the eye can see.
Can Zimbabwe-style inflation be that far behind?
Richard W. Bell
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.