piggyarg: Your argument is perfectly rational when measured from a fixed value $. But we (USA) have Helicopter Ben exactly to prevent that catastrophe from becoming noticed. He is pumping liquidity fast and creatively enough that asset deflation will not occur. Look for an inflation rate of at least 10% over the next decade as the forced liquidity works its magic. It is the ’70s story all over again – an expensive war followed by raging inflation. That helps all debtors, including governments. Really, there are no losers (other than savers, who aren’t many) politically.
