A downward spiral of stagnation and deflation - “stag-deflation” - is threatening the US and the world. ++ Central banks are no longer lenders of last resort, having to give direct loans, or even becoming the sole lenders on the market. ++ Governments are thus absorbing private sector losses, endangering their long-term solvency. ++ “2009 will be a painful year.” ++ “’Crazy’ policy
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