Runaway government spending is a political disease where the politicians are, however, not the sole culprits. Also guilty are the media (and especially TV for an inability to explain complicated issues; the voters for their lack of interest; special interest groups solely concerned with their own thing; declining productivity that has two parents: a tax system encouraging consumption instead of savings and a society devoted to the notion of leisure instead of work.

A year ago, with great fanfare, a program was unveiled in Washington to "save the dollar": $30 billion would be committed; the Treasury would sell gold; the Europeans and Japanese would join in. It worked for awhile, and then the dollar was back where we started, gold has gone from $250 to $400 and inflation was going through the roof.

The actions of the Fed [in October] were made inevitable by the runaway nature of inflation and the beginnings of unbridled speculation, not only in gold but in practically all commodities. Taken in the absence of other measures, the actions may, in time, reduce inflation as the economy slows drastically. A recession has been made both certain and steep.

I am very skeptical about the capacity of monetary policy alone to cope with our problems. I fear we may wind up with both a recession and inflation, unemployment and a weak dollar. As revenues decline because of recession, some government expenditures will actually increase, producing massive deficits and the necessity to reflate the economy from an intractable double-digit, or near double-digit, inflation base.