Some prescient thoughts from Andy Xie, courtesy of Barry Ritholz:
The bottom line is that, regardless of what central banks say and do, there will be a lot more money in the world after the crisis than before. After a debt bubble bursts, there are two effective ways to deleverage: (1) bankruptcy, or (2) inflation. Governments’ actions in the past year show that they cannot accept the first option. A mild form of stagflation is probably the best that one could hope for after a debt bubble.
Here is the link:Andy Xie’s thoughts