"Liquidate Labor, Liquidate Stocks, Liquidate the Farmers, Liquidate Real Estate!… Even a Panic Is Not Altogether a Bad Thing" Weblogging

Robert Murphy says that in the absence of Bernanke's excessive inflationary policies we would now be undergoing deflation at a rate of 10%/year.

But he does not understand "why [predicting] price inflation (and interest rates) are the decisive criteria for whose model and hence policy recommendations are right."

And, in his view, Bernanke's policies remain bad and impious: we would have been better off without the expansion of the Federal Reserve's balance sheet from $700 billion to $3 trillion, and with 10%/year deflation right now.