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Friday, September 19, 2008

Above my pay grade

Answering this question is above my pay grade, but I nevertheless wonder what happens to a country which is already deep in debt when it is forced to pony up trillions, perhaps even tens of trillions of dollars, to keep its financial system from outright collapse?

While the effects of an outright collapse of the financial system would certainly be devastating, are the long run effects of this bailout going to be much better? I'm not at all sure.

Hyperinflation is one of those words that comes into my mind.

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