socialize_me
11-15-2008, 12:03 AM
I've been reading a lot of articles where there's speculation the G-20 will uniformly inflate their currencies to easy the debt relief process--are they that stupid or unimaginative?? I mean many of the policies they advocate and engineered are actually very clever, but this seems like something out of the Keynesian-Friedman playbook. Very predictable and elementary. I guess I can't put it past them since Bernanke is a Milton Friedman apologist and his policies are anything but those advocated by Milt.
Seriously, do they think it's just that easy to devalue all currencies uniformly and everything will go back to normal?? Considering the derivative market is projected to be over $1.14 quadrillion for 2008, I'm betting a debt cleansing cycle is in order that's far beyond anything inflation could fix even for the counterfeiters. It would almost have to take hyperinflation to wipe out the trillions of dollars in debt incurred. I wouldn't be surprised if this turned into double digit-trillion dollar debt accumulated by all of these financial firms.
Seriously, do they think it's just that easy to devalue all currencies uniformly and everything will go back to normal?? Considering the derivative market is projected to be over $1.14 quadrillion for 2008, I'm betting a debt cleansing cycle is in order that's far beyond anything inflation could fix even for the counterfeiters. It would almost have to take hyperinflation to wipe out the trillions of dollars in debt incurred. I wouldn't be surprised if this turned into double digit-trillion dollar debt accumulated by all of these financial firms.