Will inflation be the only way to bail out an economy consumed by debt?
In the 1930s debt deflation was allowed to take its disastrous course with public spending cuts and trade barriers making an already deteriorating cycle considerably worse.
However, anybody who has just bought into the stock market rally should really think about selling and staying out for a while. This is a time to park money in gold and silver and even exit cash, although you might care to note that cash and precious metals were the best performing asset class of the 70s, while in the 30s gold was the real star.
A new global currency is not the solution. Geithner and the politicians need to curtail the explosion in Washington spending, expanding the debt and destroying the dollar but the real solution is a gold backed currency free of government manipulation.