Asbytec

Can Obama Make Sense of All This Debt?

Zan, yes, market forces in the guise of creditor...confidence, is my guess. The best I can tell is Ben "the helo" Bernanke has been working hard with all major central banks coordinating a global liquidity injection. I believe that's part of the plan, inflate ourselves out of a deflationary spiral. Surely massive inflation will result.

Then, again already planned and coordinated with the world's central banks, shrink the money supply like there is no tomorrow to get inflation back under control, along with (possibly) some quantitative tightening?

Now, will this work to avoid a "technical" depression? I guess in theory it might, and it just might in the real world, too. But, that's the risk creditors have to understand and take. I suspect they do and will.

If Bernanke can sell this and pull it off, he will probably be more popular than Greenspan. And, the real bankers, the "shadow bankers," are behind him 110% to save the current banking system. Maybe Obama is too. So, he might just pull off the miracle of our lifetime.

Dirac, thanks for the URLs. Lemme check them out before I respond.