If you needed more proof, a reader has sent us the following clip from 2009 in which Santelli warned inflation would be “stunning” (start at 4:20):
So if his argument was never inflation, what did it concern?
In the aforementioned segment (an exchange with WSJ’s Jon Hilsenrath), Santelli said his main concern had always been “gyrations … in foreign exchange programs.”
Today, Paul Krugman completely dismisses that fear, in a post titled: “Fish in a Barrel, Rick Santelli Edition.”
He looks the dollar’s movement against major currencies, as expressed in the following chart:
It’s true that the dollar fell sharply at the beginning of 2009, but this was as a result of the crisis fading, and the safe-haven bid coming out of the dollar (a good thing).
As for the real meat of the argument, here’s Krugman:
See how stable the dollar was before the Fed starting QE? See how much it has plunged since? Neither do I.
Not exactly gyrations.
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