What many people don't seem to realize is that inflation is necessary for a fiat currency system to work. It may have to be controlled but it's much easier to control inflation than deflation.

I agree, they really blew it taking down commodities. They would have been much better off to let inflation run a little wild for awhile, even up to 20% or so and then deal with it later.

To stem inflation you need to stem growth. That would be fine if the economy was clicking on all cylinders but it wasn't. They really needed to work on the banking liquidity crisis first along with the housing crisis and then later they could tackle inflation.

Even on CNBC they were saying that the emerging markets and China could stem a recession and was the US only hope. So what did they do? They killed off the emerging markets and gave China a massive blow.