There was this big shark. Very mean. Very hard to kill. Ate everything.
But Roy Scheider killed that big shark, and you know how he did it? He let the shark eat. Jujitsu sort of thing. Turned the power of the shark on the shark. The shark ate too much — in this case, some sort of pressurized container thing. And Roy shot the container thing and, boom, the shark exploded in gluttony.
This is a universal principle. The best and maybe only way to kill something really big and really strong is to kill it with the excesses of its own bigness and strongness.
This is a principle of nature.
Since this principle is so natural and so ubiquitous, it is called many things. It is called letting the disease “run its course.” It is called letting the bad guy “have enough rope to hang himself.” It is to be “hoist by one’s own petard.” It is watching the champ get fat and lazy by eating ice cream and cruising with the chicks and then the challenger knocks him out in the first round. It happens all the time.
This is why the US will have inflation. Not because Bernanke is smart or stupid or corrupt, or because Greenspan is senile, or because the Republicans did it, or because the Democrats didn’t. It’s because it’s a principle of nature.
One you start printing those bills and selling those bonds, it’s not going to stop until it’s too much. And nobody is going to know that it’s too much until it’s too late. Because 1) how are they going to know? And because 2) that’s the way it works.
Inflation, not deflation.
Write it down.