Consistently high quality stuff at …

… www.baselinescenario.com. I do not have to write any foreword for these two links – one on ‘Banks tunnelling and the risk of inflation’ and the other on banks buying toxic assets from each other.

In fact, Simon Johnson does a very good job of showing why banks’ behaviour risks provoking inflation in the US.

Of course, these two posts suggest that the odds of the US doing sound things with China’s Treasury purchases to be somewhat longer than one of the commentators would like them to be.

30 May 2009 | By V Anantha Nageswaran | Concerning Global Financial Crisis, United States of America
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