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Sugar Highs and Financial Lows

Posted By Ron On June 2, 2009 @ 12:32 AM In Budgets,Credit,Insurance,Life,Money,Personal Finance,Wealth | Comments Disabled

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World Bank President, Robert Zoellick, warned economic policy makers recently that the stimulus packages countries are using to artificially prop up their economies create sugar highs [2] that are not sustainable.

“Right now, the international system appears to have a sufficient amount of stimulus,” Zoellick said. “The danger is if you spend too much government money, you create a different problem.”

That problem is inflation. Expectation inflation. Price inflation. Wage inflation. Cost inflation. “Bail me out, too!” inflation.