Channeling Bernanke

Me, Feb 6:

'twixt Scylla and Charybdis
...
W's wars and tax cuts have made a realistic fiscal response to the impending recession problematic. The threat of inflation constrains a monetary response.

Bernanke, Feb 29:

Bernanke Doesn't See Stagflation
Picture, However, Isn't Pretty
By Neil Irwin
Washington Post Staff Writer
Friday, February 29, 2008
...
In his second straight day of congressional testimony, Bernanke repeatedly made it clear that he believes the greatest risk facing the economy is slow growth, not high inflation. He said policymakers have fewer options for responding to the situation than they did in 2001 during the dot-com crash.

Then, the government was running large surpluses, which left more room to cut taxes or increase spending. And inflation was very low, giving the Fed leeway to cut interest rates.

Recall, what I know about economics can be written in big block letters on a postage stamp. [I took exactly one (1!) economics class in college, in the early 70s,... and I took it pass-fail, not for a grade!]

The only explanation for my prescience? Well, just that: prescience!
My psychic powers continue to manifest themselves.