Watched some slide presentations today. One of the presenters was Lacy Hunt.

Private sector has been de-leveraging, right? WRONG

Public sectors (states and municipalities) been deleveraging? NO

Corporations and businesses been de-leveraging. NADA

Federal government????  LOL You gotta be kidding.

Total indebtedness keeps going up.

WE CAN'T KEEP GROWING DEBT FASTER THAN GDP. At some point it HAS to end. It is a mathematical certainty. The only other way out is enough growth that exceeds the additional debt accumulation. LOL LOL. Dream on.

This is not going to end well. And we have the Krugmans of the world saying pedal to the metal, print baby print.

As long as banks don't get carried away loaning money out, bubbles will only pop up sporadically. But if some traction ever once takes hold, there is no exit. Stop printing by ceasing to buy Treasuries and the economy goes into free fall deflation as interest rates spike up and the US goes into a deficit spiral because of interest costs rising.  Game is up. Keep printing and.......... well I've already described that scenario. It ends with the currency eventually being worthless.

John