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To: gastrodoc who wrote (34487)	7/3/2012 12:09:42 AM
From: Hawkmoon	Respond to of 220889

The question is whether this is REALLY the bottom, or a temporary stop on the way to a bigger bottom.. Remember that had it not been for QE1 and 2, and the promise of 3, things might be even worse.. So we all wonder how many rabbits the CBs can continue pulling out of their hats when almost every nation on the planet is over-leveraged and unable to generate sufficient GDP growth to outpace their debt-financing needs. So there are two choices to solving the problem.. Let the bad debt default and recapitalize the financial system with sounder money policy (no.. not a statement in support of gold, necessarily), or inflate the hell out of it through some form of demand driven capital spending program.. (hopefully not global war).. I really don't think the latter is as much of an option as many think.. I believe that the immediate future holds more de-leveraging and demand reduction as people limit their debt. Of course, the global banking elite want to keep people paying them interest, even if the principal is never repaid.. After all, the principal was provided by depositors and the CBs.. lol Hawk