Senator warns of hyperinflation rivaling the 1980s

By Matrix | Published: August 25, 2009

The economy could spiral into not seen since the early if the does not tighten its monetary policy soon, Sen. Chuck Grassley (R-Iowa) warned Tuesday.

Grassley, speaking about the renomination of Chairman Ben Bernanke to a as head of the Fed, asserted that Bernanke’s ability to hold down would be the metric by which the Fed’s success would be measured.

“We won’t know for a year if he’s done a so far, because he shoveled money out of an airplane to save and the financial system,” Grassley said in a with Iowa reporters. “But shoveling money out of an airplane to solve problems can be inflationary — in this case, hyperinflationary — if he doesn’t start mopping up some of the money that’s out there.”

Source/Full Story: The Hill’s Blog Briefing Room

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