Former Clinton advisor Dick Morris on what’s in store for the US economy-and the rest of us.
Have you ever heard of a “depressflation”?
No surprise if you haven’t. It’s a term I coined myself, to describe the imminent
— and inevitable — result of the Democrats’ plans for “rescuing” the economy.
Think 1970s-style “stagflation” but much, much worse: massive inflation, even hyperinflation, together with Depression-like economic stagnation. A depressflation.
Why is this inevitable? Because with a bi-partisan consensus that deficits are vital in fighting the crisis (or easing the pain) there is no constraint on Obama and his party. The sky is the limit on spending, to the tune of a trillion-plus dollars over the next two years alone.
And there are only two ways to pay for it: (1) printing more money, which causes inflation, and (2) hiking taxes, which kills investment, businesses and jobs.
Then the question will be: When will we realize that government intervention is magnifying, not solving the problems that caused the crisis? When will the patience of the public with Obama’s remedies run out?
My guess is that it won’t be until 2012 — or after.
Not nice-but realistic.