The 70’s prove that the Fed can overpower recessionary deflation and cause something worse. Oddly, I hope I’m wrong.
You almost certainly are.
The dominant economic trends are all deflationary. All the Fed printing is doing is keeping the banks *barely* operational. There isn’t enough excess liquidity available for price/salary inflation.
All our past over-consumption basically amounted to money-burning. Foreclosures, bankruptcies, unemployment, credit card defaults etc. are all the equivalent of dollar destruction and ultimately deflationary. The Fed printing isn’t even close to keeping up.
