The Winter of Our Discontent

By Jon Nadler
Jan 14 2009 3:15PM

www.kitco.com

"Fed officials who pay attention to the money supply believe that the Fed's current policy of printing money never ends well and the danger of inflation is very high. They believe the Fed must withdraw the stimulus before there is any sign of inflation or it is too late. Bernanke wants the flexibility to take his time.

William Poole, who recently left his post as president of the St. Louis Fed, says it is crucial that the Fed set a target for cutting its balance sheet. Poole said the expansion of the Fed's balance sheet is unprecedented and research suggests that a surge of inflation is sure to follow."

Cheers