Inflation to the Rescue

Just when you thought analysts would start to make sense here’s an article from today posted over at MarketWatch.com:
When 0% isn’t low enough: Should Obama embrace inflation? – MarketWatch

Now my complaint isn’t the policy recommendation: that we will most likely have to inject so much money into the economy that we inflate our way back to growth. I notice that two or three people are quoted as supporting that strategy.

No. My complaint is simply this: what does the article’s author think we’ve been doing? When the Federal Reserve Board announces that it will pump great flows of cash into our financial system – to the tune of $2 to $3 trillion – what, pray tell, is that except an attempt to stoke inflation?

Now I realize that the Fed doesn’t go and say that it intends to give inflation a kick upward, but the clear intent of doling out cash as if there was no tomorrow, is just that. So for an analyst to write a column announcing that we might have to inflate the economy as if it is a novel thought at the precise moment that the Fed is doing so is disingenuous.

In fact it’s sloppy reporting.