Anyone who thinks what we’re doing is not inflationary should take a look at this little graph from the St. Louis Fed:

That’s the monetary base. I’m sure there is a way to make this seem benign, but I sure don’t know what it is. I guess Bernanke really takes that Great Depression research he did seriously. He and many others believe the depression was caused by a Federal Reserve that refused to provide enough money to the system. I guess he doesn’t intend to make that “mistake”. Any Austrian school economist wil tell you that this is BS. The depression was turned into something Great because of government intervention in the correcting process we call a market. Since Austrians are the only ones to predict both the crash of ’29 and this current mess, maybe we should pay attention to them.