The recession I have been predicting since 2006 has arrived, but a depression can still be avoided if we cease these silly government interventions and stop trying to inflate the credit crisis away.
Investors who are banking for a silver lining to this recession may be disappointed by both a continued increase in the unemployment rate, yet stubbornly high inflation.
We must grow the economy by empowering the private sector. I would have hoped by now we learned that inflation doesn't solve anything.
The two hallmarks of a banana republic are very high rates of inflation coupled with substantial government controls over the economy, which lead to high rates of unemployment and poverty.