Here is a good article by Doug Noland on the subject also. This quote will give you a taste of what it is about. "Over the years, I’ve often been asked to predict how this will all end: will it be either hyperinflation or deflation? My response has always been “we’ll have to carefully monitor how things unfold.” From my perspective, there have been two critical unknowns. First, I’ve never felt comfortable predicting to what extent global policy measures would be used to prolong the Bubble (Fed balance sheet on the way to $10 TN?). Second, I’ve believed it’s unknowable as to how long extraordinarily speculative financial markets would play along. There has been a crucial interplay at work between aggressive “activist” policymaking and sustained confidence in the suspect financial claims piling up virtually all over the world." Good article to read if you have the time and interest. John
|