Bad Stuff That's Actually Good Stuff

Posts like this are amusing to me. It boils down to "If the Fed succeeds in righting the economy and creating inflation, we could have inflation!" (my paraphrase). The Fed would not be doing it's job properly if we did not expect inflation when the current predicament is disinflation. In other words, one of his "risks" is actually that the policy will work.

The concerns about borrowing dollars to buy hotter currencies are worries that ignore balancing effects. Stronger Brazilian currency for instance could be offset by more Brazilians buying American vacation property and USD denominated assets and goods.