The FED still faces three problems. (1) If it deflates, the financial markets will collapse. (2) If it does nothing, there will be mass price inflation if banks start lending, making use of the FED's doubling of the monetary base. (3) If banks don't start lending, the recovery will not appear. The FED wants to avoid all three.

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The FED still faces three problems. (1) If it deflates, the financial markets will collapse. (2) If it does nothing, there will be mass price inflation if banks start lending, making use of the FED's doubling of the monetary base. (3) If banks don't start lending, the recovery will not appear. The FED wants to avoid all three.

Authors Website: http://theinternationallibertarian.blogspot.com/

Authors Bio:

Darren Wolfe is the former Eastern Vice Chair of the Libertarian Party of Pennsylvania. He presently blogs as the International Libertarian http://www.theinternationallibertarian.blogspot.com/ His articles have also appeared in Ammoland.com, American Juror, OpEdNews.com, the Libertarian Penn, and the Nolanchart.com. News services such as the New York Post.com and Rational Review have published links to his work. Darren is the Philadelphia area contact for Come Home America (http://comehomeamerica.us/), a politically neutral peace movement. Follow me on Twitter: http://twitter.com/IntLibertarian