So our friends in Europe will not use government spending to stimulate their economies because that would cause inflation.

Which is not really an objection for Wonks Anonymous and should not really be an objection for most of the rest of us because the impact of inflation is different on different groups in the economy.

First, most of us need to get over the idea that we will get out of this without losing significant purchasing power. We have already seen significant declines in our retirement accounts and in the value of our houses, without any inflation. If the economy does not recover we will lose jobs and take substantial pay cuts, voluntarily or involuntarily.

In fact inflation is our friend because it will allow our employers to make discreet pay cuts without troublesome firings and arguments.

Meanwhile those of us who owe money, and since we own the US Government we all of owe money big time, will have an easier time paying it back. Our debts are in dollars. When the dollar loses value it becomes easier to come by. We may find that the strain of making the mortgage payment on our depreciated houses gets easier as we get more inflated dollars for our efforts.

Which brings us to the people who will lose, that being the banksters who have just gotten a free gift of tons of dollars from the Fed and the Treasury and the Chinese and others who have been buying up our debt, thinking wishfully that what goes up will never come down.

They will be repaid in dollars that buy less.

So everyone else had taken a haircut and we all more or less resemble a skinhead convention. Isn't it their turn?