The only way out is monetization

[Tulpen]

Loans, stimulus packages, swaps, credit, packages. It is proven those things do not help one thing. All that the treasury and the Fed can do now is straightforward monetization.

Should be happening soon.

Hyper inflation is coming.

[grapejelly]

The current Fed and Treasury make FDR and Hoover look like a pair of pickpockets compared to major kingpins.

[phirang]

Hyperinflation is not coming: new treasury issues will be sterilized by bond sales.

China will buy $200B worth of t-bills.

OPEC and shitty BRIC's will buy the rest.

EMU will just dither ineptly...

I think this pain might be rather short lived...

[grapejelly]

The panic will subside but we are dipping into a rapid recession so I don't think the pain will be short lived at all.

Also, once this part of the deleveraging finishes, there will be a flight OUT of treasurys into tangibles, methinks, and there will be very significant increases in interest rates.

[phirang]

The panic will subside but we are dipping into a rapid recession so I don't think the pain will be short lived at all.

Also, once this part of the deleveraging finishes, there will be a flight OUT of treasurys into tangibles, methinks, and there will be very significant increases in interest rates.

I agree, but the flight will be into industrial inputs, not gold.

[Lukester]

Right. Gold should "decouple" from the CRB / CCI and drop while the CRB / CCI rises. (not).

I agree, but the flight will be into industrial inputs, not gold.