Old Karl is fun to read but tends to overstate and overshoot things.
You beat me to it Dave. I also read that post on CR as well this morning during breakfast. The more interesting part of that post was what they said about Bernanke and the Fed attempting to inflate to cover the borrowing and only up to that amount. I wouldn’t be surprised if this is true, but it seems like a long shot to me and I don’t think that the FED has the degree of control necessary to accomplish equilibrium between Hyper-Inflation and Deflation.
