Stimulus Package Will Stimulate … Inflation

by Dick Morris - January 29th, 2009 - DickMorris.com

The central economic calamity of the next five years may not be the current depression, high unemployment or economic contraction. It may, instead, be inflation coming in 2011 and 2012, which will be high in the double digits, caused by the massive increase in the money supply caused both by the stimulus package and the Troubled Asset Relief Program (TARP) bailouts.

Though Morris is frequently wrong in his predictions, he has a track record that is way better than 50%. This prediction is based on a pretty accurate reading of history. The old cliche that those who do not understand history are condemned to repeat it is well known and itself a pretty accurate summation of current reality.

The worst consequences of the Carter years took until 1983 to work through. Back then Democrats loved to insist that the recession that Reagan inherited was all his fault. In reality he ended the recession in record time by being a President who truly understood what we had to do to get America working again. He focused on cutting taxes and reducing the oppressive bureaucracies' focus on small business.

I guarantee that Democrats will never blame Obama for the consequence of his actions, just as they never blamed Carter for the consequence of his actions. It will take a few years for the disasters to build, and it will take much longer to end them (if they ever are ended) than the Democrats will ever accept. When the voters turn to Republicans, I wonder what Republicans will do? It appears that Republicans are turning to socialism as well, not the belief in free markets that Reagan advocated.

The only real question is not whether the inflation is coming, but whether America has the will to return to free markets after it appears. Free markets will cease to exist under Obama and we are clearly headed into being the same kind of failed socialist nation that Russia and France have become.

For the greatest nation on earth to abandon its free market strengths is not just the height of idiocy, but a truly sad commentary on the growing stupidity of mankind.