Andy,

Not trying to disagree, but I believe the Fed desperately wants (asset) inflation. The Fed is staving off deflation as that is it's biggest fear, not inflation. They are going to get (real) Consumer Price Inflation, which we all know is happening already anyways. I do not believe they will have long term success with asset inflation, and that is where the real disaster lurks. Everything that you and I own that is a positive in our net worth calculation (and those of rich people) is going to decline in value (i.e. house, stocks, bonds), and everything that is a negative on the net worth calulation is going to get more expensive (food, energy, etc.).

To hell with the middle class....

The Fed will Never, Ever, Never, Ever, Never raise interset rates voluntarily or the entire economyy goes straight into the tank (riots in the streets bad). Higher interest rates are going to be shoved down the Feds (and ours) throat by the Bond Market.....

JMHO

MB