Deficits and Inflation

This article by Jonathon Hoenig includes a 1933 inflation propaganda film.  Much of the film repeats the line of thinking currently espoused by our financial leaders.  The government effort in the 1930s was expensive and largely ineffective.  This era launched a debasement of the US Dollar of over 90%  But it was politically popular.  Many of the 1930s programs such as Social Security remain in use and have been greatly expanded in many cases.  Financial and other crises create a public demand for government action.  It remains to be seen whether these current actions represent sound fiscal policy over the long term, or whether a new debasement of the currency has begun.