When everybody starts spending the money they're now leaving in vaults and mattresses, way too much money will be chasing way too few goods and services. Double-digit inflation will return to America.
Yesterday's Fed action won't help, but it will put more money out there that the Fed will have to mop up once the economy, on its own, revives.
Dick Morris and Eileen McGann
Dick Morris, a former political adviser to Sen. Trent Lott (R-Miss.) and President Bill Clinton, is the author of
2010: Take Back America. To get all of Dick Morris’s and Eileen McGann’s columns for free by email, go to
www.dickmorris.com