Summary: What is a reasonable worse-case scenario for America during the next generation or two? This post sketches one such, in which political weakness undermines America's economic foundations. Whether or not this happens depends on our actions during the next few years. People seeking to incite irrational fears -- hoping to make us easy to manipulate -- … Continue reading Worry not about America becoming like Zimbabwe. Worry about becoming like Argentina.
Despite folks seeking to incite panic by comparing the US to Zimbabwe (e.g., Glenn Reynolds), the Federal Reserve is not monetizing the government's debt (aka massive printing of money). It's balance sheet has been flat since the end of 2008. The Fed expanded its balance sheet (printing money) in the 4th quarter of 2008, as the demand for cash skyrocketed -- … Continue reading The Fed is not wildly printing money, as yet no hyperinflation, we’re not becoming Zimbabwe
Summary: Can Obama make America like Zimbabwe? Or is this widespread warning a sign that we've become gullible fools? The easy acceptance of this preposterous warning suggests the latter. It's sad that such a post is necessary. Worse, explaining these facts is unlikely to change the mind of many people believing this nonsense. This is … Continue reading Can Obama turn America into something like Zimbabwe?