The US debt is sitting around 13.5 trillion, 1.4 trillion this year alone, 400 billion this year on interest.
Bernake isn't worried about inflation, he is worried about deflation. All the bad debt, the defaults, they have shrunk the overall money supply. Bernake is trying to flood the market with new debt and new money all together to fight deflation.
Deflation is what caused the Great Depression, Bernake doesn't want a repeat of that.
Hi Maple, congrats on going to university!!! In this post I was just looking at one small part of the debt, commenting on the discrepancy in regards to Bernake mentioning fears earlier of inflation. No inflation worries here...like you say, the concern is deflation this time(like last time in the 90s) and it could be worse than the nineties due to the sluggish growth of M2. Once again bailing out the banks with enough currency to sink a ship with no positive effect on overall velocity. Just like the last time it seems, all that currency is going over seas and it is up to the consumer and its level of M2 here in the US to save the economy. What a joke. I wonder how hiding the M1 velocity as per an article printed in the US awhile ago is going to help them fudge the reality of things to the regular people ( consumers/M2) to get them, us, spending again....?
M2 velocity link...