Velocityshares Daily 2X Vix Medium Term (TVIZ)

[gldtimer]

Four Ways to Deal with Excessive Debt.

#1. Grow your way out.

#2. Print your way out... strategic bombing with money

#3. Bankruptcy...deflationary depression 'Ice Age'.

#4. Forgiveness...tactical bombing with money.

Looking at each one:

#1. Isn't going to happen with global inequity and high debt levels acting as a drag on consumption.

#2. May happen in the future.

#3. Won't happen if either #2 or #4 is used.

#4. Forgiveness... tactically using money to shore up the system from imploding but keeping it in a zombie state that stymies growth. This is what the Japanese have been doing for close to thirty years and all the others for the past decade.

The difference between #2 and #4 is that #2 increases the general level of prices where #4 prevents the fall or deflation of prices.