Those of you who know Link Corkery, he has been hammering on the risks of Inflation and how history will repeat itself. He has been through 3 or 4 real estate cycles and he is fairly certain that inflation is on the horizon.

The Feb issue of Economist magazine talks about the danger of premature tightening of monetary policy worldwide. Premature tax increases and higher interest rates can have a calamitous effect on economies, as evident in the Japanese 10 year slump the 1937 push into depression.

What is more dangerous inflation or possible slip back into recession? The variegated landscape requires a measured approach depending on the pace of growth. In rich countries with unstable economies it may be too early to start tightening, however emerging economies some of which may be overheating, tightening should start now.

I am quite concerned about the mounting deficit and the effects of printing so much money. With every dollar we print, the value of my hard earned savings goes down. Yet I am not certain there is or was a better approach in the face of the financial disaster. Its clear to me that our administration is not doing enough now to control spending. We are in danger of making the situation much worse for us and our children. Although the economy is still too fragile and credit markets still too dry to begin changing now, I believe our administration must lay out a more credible fiscal plan.