Cats and Dogs Living Together

As we sit on the precipice of the Fed’s second round of quantitative easing (QE2…. it seems),  here’s a “no outlet” view of the US economy.  The author suggests there are two routes we can take: balance sheet deleveraging and deflation where asset prices collapse along with the economy; or hyper-inflation spurred by the Fed’s QE2.  This leads to a complete breakdown in global financial markets (and the fabric of society) where we could see cats and dogs living together. 

-Billy Ray

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