While Washington fiddles over the porkulus bill before them, and President Obama and Chairpersons Reid and Pelosi march us towards depression, here's a caution from Dick Morris today about out hyper-inflationary future:
"In the seven years between 2000 and 2007, the money supply rose from $600 billion to $800 billion. In 2008, alone, it more than doubled from $800 billion to $1.7 trillion! We cannot sustain this level of increase in the money supply without having way too much money chasing way too few goods and services, sending prices up into double digit inflation. While the economy is in shell shock, at the moment, we face deflation. But once it begins to come back and the dollars come out of hiding, we will find the resulting inflation intractable and very difficult to cure."
In news closer to home, the CEO of AT&T (my employer) today asked the Board to not pay him a bonus for 2008, which they obliged. At the same time, he promised no management salary increases in 2009, but, the board did approve management bonuses, thus much, much reduced from previous years.