.....no drama BVC, love a chinwag about the global economy. Would be a simple solution to cancel the debts, but the time to do it would be when Lehman collapsed, maintaining the status quo is the course we are on, like it or not.
Once the Euro is sorted, (my guess is Greece exits), or Germany spits the dummy and breaks up the whole thing, the markets will calm down, as I said could take ten to fifteen years for that to unravel, slow crawl out of recession is on the cards. Not so bad as Japan did ok for ten years with zero growth, no bad thing.
Re inflation, (didnt mean leverage), if base rates/ interbank lending rates are kept close to zero whilst inflation continues at 4%, the real value of your debts are dimishing by the difference every year.....this is the plan, its a simple wealth transfer from the retired (looking for interest on savings) to those who holds debts (typically those of working age with houses, kids and credit cards) as they will spend more with cheap money hence stimulating the economy into growth.....you see, not that bad after all......my mortgage payments are down to nothing but I have to put up with my retired mum moaning about a 2% yield on her barclays bonds......!!!!!
Good question.....poles are gardeners, natch!
