JK: Great article. Just this line alone is worth the price of admission, as it were. It should not only be chiseled around the continuous marble frieze on the Federal Reserve System temple but also engraved on every fiat dollar that it issues.
The Fed can’t print money, it can only print dollars.
It's less about the Fed's printing press and more about jobs. As long as we keep losing jobs here at home and housing prices continue to plummet, there is NOTHING the fed can do to combat deflation. I don't think the fed has a real end-game plan ... they are just shooting into the wind, just like Bush has done the last 8 years.
There is nothing our current/future president and Fed can do about plummeting housing prices. The only thing they can help control is keeping and creating jobs. Hopefully, the next president does more and lives up to his word by creating jobs, otherwise, deflation will be around for an unnecessarily long time.
Only with job creation can housing values be propped up again. It is sad that Bush has never realized this, and I still don't believe he does even to this day.
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