The Fed should re-examine its great mistakes that led to the great inflation. It should abandon the dogma that inflation is caused when the economy grows too much and workers get paid too much. Inflation is caused when government spends too much and prints too much. Money on Wall Street is too easy, and credit on Main Street is too tight. The Fed’s bloated balance sheet, designed to support the biggest firms in a bygone

This talk about Europe’s ability to wield its holdings of US Treasuries as a political tool is as divorced from reality as the talk about China’s ability to wield its holdings of US Treasuries as a political tool.  For all the huffing and puffing, Chinese holdings of US assets actually increased. This shouldn’t have been a surprise. If you run massive trade surpluses, you have no choice but to acquire foreign assets, and if you