Do you really think a $700 billion dollar loan is deflationary??

Depends on the response from our foreign creditors. Of itself no, the 700 billion is inflationary. If however it blows open treasury spreads, you’ve just opened the gates of hell. That is deflationary and there is NO stopping it once it starts. The rush for the exits would be monstrous.

So in my mind its not that we won’t try to print our way out of this mess, its that we will fail. Debt will be repaid or defaulted, equilibrium will be restored and there will be a lot of pain (deflationary) between here and there.

Dead-on-balls-accurate, its an industry term. I’m just not sure what industry.
Josh