banksters use deflation myth to get bailouts , page-60

the real point is that the loop hole is in no way a sure thing of working, it lacks historical precedents at this scale, this ability to inflate no matter what the debt level theory is fine in theory, the problem is the only way to make the assets worth more than the liabilities is credit expansion, credit expansion through monetary transmission of printed money works every time till it doesn't. There is an upper bound where this solution destabilizes . This point is what Hyman Minksy referred to in Financial Instability Hypothesis. He further says that Ben's moneterisation without a functional monetary transmission channel and credit market will eventually fail.

When this fails and everyone realizes we will have an inescapable period of deflation before reflation at a lower level once debt is liquidated. Everything from California to Greece is failing in slow mo. I expect a GFC2 where the central banks throw the kitchen sink at it, after that we are in the gold explosion territory. The difference with the great depression was the liquidationists had their way initially, this got rid of a lot of bad debt, which allowed FDR to do the "new deal", this time around they are doing it in the opposite order, either way the liquidation bit has to occur.