Monday, August 3, 2009

Why the Obama Stimulus Has Us on a Collision Course with Inflation

http://www.moneymorning.com/2009/08/03/obama-stimulus-inflation/

"...In short, it looks like we’re already experiencing an economic rebound – without the Obama stimulus having really even kicked in..."

"...means the economy will be in rebound mode when nearly three-quarters of a trillion dollars in stimulus money starts to flow in. Dumping all that money into an already-growing economy won’t just serve as a simple tailwind that gives the economy a gentle push; it will be more like the head-snapping start followed by the thunderous charge down the quarter mile..."

"...only one outcome from that scenario – rampant inflation. In fact, U.S. consumers are probably headed for the worst bout of inflation since the 1980s..."

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