This doesn’t sound like Zimbabwe to me….
“Fear of deflation was one of the main justifications the Fed’s chairman, Ben S Bernanke, advanced for the decision in November to pump $600 billion into the banking system, a resumption of a strategy to spur the recovery by buying government securities to hold down long-term rates. “ NY Times piece Jan 4, 2011. http://www.nytimes.com/2011/01/05/business/economy/05fomc.html
Would the FED be buying up $600 billion in debt (QE2) if were in hyperinflation as Ron Paul feared? Printing money generates inflation. The fed WANTS inflation. http://money.cnn.com/2010/11/03/news/economy/fed_decision/index.htm
BTW… I don’t get my financial info from MSNBC, just my political insights from Rachel Maddow.
(OK…correction to my earlier post. FED didn’t say WERE deflating, they’ve just been obsessed that we might. We are inflating, but just barely)