IMHO, they’ve been worried about deflation for **years.** That’s why Greenspan dropped the FFTR to 1% and why we’re sitting a ZERO now. 🙁 It’s why they’ve printed trillions of dollars to buy MBSs and Treasuries and why they’ve backed/bought trillions more. We ARE in a deflationary environment, and the fear of (hyper)inflation is a result of their trying to fight it.
I wish they would understand that they will have to print more and more over time to get smaller inflationary results over shorter periods of time, but they refuse to acknowledge that reality. Until and unless they grasp what’s going on, we can only know that they will continue with their attempts to destroy our purchasing power.
