Liveblogging World War II: October 18, 1940
Yes, the Washington Post Should Shut Down Today (Why Oh Why Can't We Have a Better Press Corps?)

Yes, the Washington Post Should Shut Down Today (Why Oh Why Can't We Have a Better Press Corps?)

And anyone currently working for it who wants to retain their honor, or their reputation, or have a future in journalism should abjectly apologize and look for another job.

First we have Robert Samuelson:

Can the Fed still rejuvenate the economy?: It is widely, though not universally, assumed that the Federal Reserve will soon move to bolster the economy by trying to nudge down long-term interest rates.... [T]he move would be something of an act of desperation, reflecting a poverty of good ideas to resuscitate the economy.... Chairman Ben Bernanke makes periodic speeches arguing that the Fed still has ample policy tools to revive the economy and reduce the appalling unemployment, despite lowering its short-term interest rate to zero. The reality is otherwise; the Fed's remaining tools are arcane, weak, or both....

Still, there are dangers. When the Fed buys Treasury bonds, it pumps dollars into the economy.... [I]f all the cheap money spurs much higher economic growth, many of these reserves will turn into loans and raise the specter of higher inflation -- "too much money chasing too few goods."... [T]here would be enormous pressure on the Fed not to raise rates while unemployment remains high...

Growth strong enough that inflation begins to rise from its current suboptimally low levels is simply not a problem. It is an advantage.


UPDATE: Dean Baker is on the case:

Robert Samuelson is Worried More Quantitative Easing Could Spark Strong Growth: I'm not kidding, read it for yourself.... [W]e're sitting here in the most prolonged downturn since the Great Depression, with the inflation rate closing in on zero, and Samuelson is worried that we may get a burst of growth that could lead to higher inflation. Only in the Washington Post.

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