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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (66522)	9/27/2010 6:31:41 PM
From: carranza2	Read Replies (1) \| Respond to of 217688

Maybe so, who knows. Here is the CBO's report on the potential for a fiscal crisis in the US [go to the pdf and the full report for the full version which is not particularly difficult reading]: cbo.gov It is clear that there are no good choices. My guess is that there ultimately will be a combination of spending cuts, tax increases and accelerated printing. The first two are difficult politically, especially in the midst of a recession and during an election cycle. Inflating via QE is relatively easy and not nearly as politically difficult. My guess is therefore on substantial QE because it will have to make up the slack for a failure to cut spending and raise taxes. It is also something that Bernanke seems inclined to do and something he can control.