We are in Good Company

From Gary Dvorchak...

(realmoney.com)

The debate will rage if the $7 or so trillion of "aid" now offered to our financial system will eventually become inflationary. Certainly not in the immediate future, deflation is more the problem now, but massive money creation is usually inflationary longer term. Is our future to be Japan-- or Zimbabwe Light?

In any case, I was amused to learn of this endorsement from Dr. G Gono, the President of the Reserve Bank of Zimbabwe. On page 8 of their Statement of Monetary Policy, released last spring, he says:

"As Monetary Authorities, we have been humbled and have taken heart in the realization that some leading Central Banks, including those in the USA and the UK, are now not just talking of, but also actually implementing flexible and pragmatic central bank support programmes where these are deemed necessary in their National interests. That is precisely the path that we began over 4 years ago in pursuit of our own national interest and we have not wavered on that critical path despite the untold misunderstanding, vilification and demonization we have endured from across the political divide."

Good company indeed!