John Carney Nails It

Some time ago, I posted an entry which explained why I thought we were facing a deflationary depression, and that the FED's actions would not cause inflation after the 2008 debt crisis, as many had argued. I had a sense then that the money the FED was creating was filling in giant debt holes, and therefore, since they were only replacing what was being lost, inflation would not be a threat.

http://econmom.blogspot.com/2009/11/inflation-vs-deflation-not-so-simple.html

Today I found a much better explanation of why neither Europe or the U.S. is facing inflation any time in the near future.

http://www.cnbc.com/id/45476620

I have not posted much lately because there just has not been much to say. Nothing has changed. The Euro zone is on the verge of collapse and will enter a Great Recession of its own, if not an outright Depression.

We will be deeply affected by these events. Our large banks are very unhealthy and I fear cannot survive another financial shock.

I believe they will be "reorganized" by the government within the next two years.

Hang on for the ride.