Daniela Cambone did an interview with Newt Gingrich and its posted on Kitco.com. Gingrich is said to be hinting at a possible 2012 presidential run. A quote from the article: "Under this “socialist, big government redistributionist model,” it’s very hard to create economic growth".
Gingrich is also critical of Bernanke. He says he lacks understanding of the velocity of money. Therefore, the recession is not about a lack of money. It is about a lack of velocity of money. Gingrich says "in a period of really deep economic recession people don’t turn it over very fast.”
I would conclude that increasing the amount of money as Bernanke has done and increasing the velocity of money (which will occur in a real recovery) will eventually lead to inflation.
In my opinion, Gingrich is on the right track. Read it all here.
Al Fin: "Cowboy Commentary", aka "Eat your veggies" The Flag banner is posted in order to defy those who would make patriotic symbols illegal or disreputable.
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