• Story alerts   • Letter to Editor   • Pin it  Almost everybody
prefers inflation to deflation. Certainly, economists and
politicians do. And the general public prefers inflation too.
Why do you think Viagra sells so well? But you have probably
noticed that those TV ads for drugs to cure erectile deflation
warn that if you experience medically induced concupiscence for
several hours, you should see your doctor.  And that’s exactly
our economic dilemma these days: we are printing so much money
to conquer deflation that we might be hit with fearful inflation
as soon as we recover. According to the Wall Street Journal, the
United States has pledged to spend, invest, or loan as much as
$10 trillion to fight deflation. President-elect Obama wants to
toss in another trillion bucks soon, probably to be followed by
much more. The government and the central bank will get some of
this money back, but much of it could turn into inflation. The
Federal Reserve has not only lowered short-term interest rates
to almost zero