We're no longer in Kansas, Dorothy. At this point, the world's financial markets are in the firm grasp of a massive tornado. Our vision is blurred with fast-moving images of abandoned houses, crumbling banks, pontificating politicians, alien-looking Treasury secretaries on one knee, and suicide stock and commodities charts. When the whole mess crashes back on terra firma, the landscape will look considerably different. But, what? We remain convinced that the result, with the unavoidable time lag, will be inflation on an epic, global scale. But if history provides one lesson in rich abundance, it is that the future is unpredictable. Who is to say that the government of these United States -- and of similarly indebted and in-trouble countries "over there" -- aren't too late to the game? Or that even $700 billion, or a trillion... or...?... will not prove to be too little, too late?...
Filed under: Politics, Inflation, Casey Research, McCain, Economic Forecast, Obama, Bailout, Barton Biggs, Energy, FDIC, Europe