Correct, paramount. All the while, the debt keeps piling up.
I suppose all the talk about sequestration, spending cuts, raising taxes, etc., is supposed to be inflationary to some, but I’m not buying it. Though the monetization schemes of the Fed are indeed inflationary, you can have “inflation” but still see nominal price declines and a slowing economy since the Fed might not be willing/able to fully offset the deflationary forces. Only time will tell how this all ends, but they will do their best to keep kicking the proverbial can down the road. We have decades’ worth of credit expansion and spending that have to be wound down.
