Inflation or Deflation?

Inflation or Deflation? No it is Hyperinflation :

INFLATION OR DEFLATION?

By Merle Hazard

As we go through this recession

As farther down we slip

Will our central bank get traction soon, or

Will it lose its grip?

It’s a mini-Great Depression

Our markets went berserk

The Fed is printing trillions now, but

Will their efforts work?

Inflation or deflation?

Tell me, if you can

Will we be Zimbabwe

Or will we be Japan?

Credit markets came undone

And still are in distress

Will the dollars in my mattress

Buy much more next year or less?

It’s a desperate situation

When you’re at the zero bound

If a tree falls in a forest,

Is it making any sound?

New money makes inflation

If folks who have it spend

But if it only sits there,

Then the misery will not end

Inflation or deflation?

The choice is looking grim

I wonder what John Maynard Keynes would say

If we asked him

Inflation or deflation?

Tell me, if you can

Will we be Zimbabwe

Or will we be Japan?