Get Ready for Inflation!

This graphic should scare you. It's the growth in the money supply.

Art Laffer has a great article in The Wall Street Journal today. He makes a scary case for inflation...as in, he's right, and you should be scared. Those of us who lived through the 70's and 80's when interest rates went to 21% know what's coming.

I just refinanced my mortgage at 4.75%. That's for 30 years, folks. In 2 years when mortgage rates are 15% (or even a more modest 9% - we've seen that not too long ago), you'll be paying DOUBLE what I pay for the same house. As Ron White would say, "I know -- I've seen me do it". I'm not crowing about this...I'm warning that if you think the economy is in the pits now, wait until interest rates shoot up. How'd you like to pay 10% on a car loan for that stupid Prius clone that Gov't Motors will be making? Not me -- I'll get a new Suburban.

BOHICA.

H/T Wall Street Journal