Quote:
Originally Posted by rodneym
Patrickt,
I can see that working for small items but damn, $40k engine? Does the person who can plunk down 40 large on a 'replica' engine worry about inflation?  |
Well I don't know, but that's Bernanke's thinking. There are a lot of people, and a lot of companies, holding cash and that are reluctant to spend it. Supposedly they are thinking that what they would be buying will be worth less in a little while, so they just sit and hold. Forcing an inflationary trend will bring the cash out of the accounts and back in to the purchasing economy. Of course, there are a lot of smart people that think Bernanke is all wet on that thinking....
EDIT -- For example, this:
http://www.businessinsider.com/fed-i...target-2010-10