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| No one knows what shape the default might take. If we look at pensions, however, wouldn't we have to say default is pretty much assured? And, wouldn't we have to think that would be deflationary?
As for the bond markets, we need to think about this, don't we, in terms of fewer and fewer people holding more and more of the debt? It's just a Monopoly game to many of these people. They will never spend the money - at least consume it. There might be *continued* inflation in the things they want to buy - which might not be bonds *at some point*. But, what value might corn, or beans, or wheat, or copper have? Again, it isn't as simple, IMHO, as more money created equals hyperinflation - at least for awhile (and I have no idea of the time window). | |
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John - inflation/deflation - probably one after the other
