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To: Bank Holding Company who wrote (241365)3/18/2010 1:27:59 PM
From: Skeeter BugRespond to of 306849
 
>>It's not going to be repaid. Why won't they hyperinflate. What other choice is there???<<

the question is... better for whom?

the first point to understand is that government doesn't control money. the central bankers control the money. this absolute monetary control is advertised as "independence."

since the central bankers control the money, the appropriate analysis will include pondering what is best for the central bankers - they likely won't decide to kill themselves off, will they?

hyperinflation will destroy banking. every bank will have a run as the people ditch cash and buy up assets. the banks don't have the money and the banking system collapses.

will the central bankers collapse their cash cow?

possible, but not the likeliest scenario, imho.