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It seems to me that the biggest impediment to a very strong economy is the already low fed funds rates. Will the rate slowly be increased as the economy accelerates? (assuming it accelerates). If so, that would put a damper on things.
I know Buff is very worried about the money supply. He's a big fan of the Austrian School of economists. I myself am not though I once was. Maybe he has the opposite story.
Many economists are of the opinion that flooding the marketplace with currency is a good strategy to get an economy going. It doesn't just get handed out to people in the streets. Money is lent to people and businesses and spent by people and businesses.
Interestingly, there is little or no inflation in the US right now. Greenspan is as worried about deflation actually.
Many recessions have been accompanied by a shrinking money supply and many recoveries have been accompanied by an expanding money supply.
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