The Other Shoe

by Sal on December 15, 2009

in Economy,Politics

Consider this:

  • $700 billion for TARP
  • $800 billion for the Obama Stimulus Porkulus
  • $170 billion for Bush’s 2008 stimulus
  • $5.5 trillion in outlays by the Federal Reserve to shore up the banking industry
  • $3.1 trillion 2009 Federal Budget
  • $3.55 trillion 2010 Federal Budget

That brings the total spending of the Federal Government for 2008 to 2010 to $13.82 trillion. That doesn’t even take into account Health Care or stimulus porkulus II.  With that much cash injected into the economy by the government, many have argued that the next economic shoe to drop would be runaway inflation.  It looks like that shoe is starting to drop.  In November, wholesale inflation rose 1.8% and core inflation rose 0.5%, the largest levels in over a year.  That is just one month’s worth of inflation.  In good economic times, inflation is not a good thing and needs to be kept in-check.  In bad economic times like ours, inflation has the danger of being a complete disaster for the American economy, one that will take years (and an aggressive Conservative economic plan) to sort out.

H/T: The Patriot Room

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