Interest Rates @0%

I think the Fed is doing the right thing dropping the Funds rate to 0%. Everyone says it effectively was there anyway.

Bernake is a deflation hawk (a good thing to have in a deflationary environment) so it's not surprising that he has the will to drop the rates to 0.

Clearly though, I think that the key question is that will he have the will to jack the rates up as soon as possible? We are currently in a deflationary environment, but that won't last for ever. With Billions and potentially Trillons of new money out there, it's clear that Zimbabwaw-esk hyperinflation is a real possibility.

It's easy to inject money into a struggling economy, it's like Christmas for the Fed. But when the recovery starts, it will be important that someone crashes the party. This recovery needs to be slow, painfully slow. It's a lot harder to end the party than it is to start one. I sincerely hope that we have the right guy heading the Fed to do just that.
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