I read the post mention here i won't answer to the parallel made with history , instead i'll point to an article in Reuters last friday by the editor ,about treasury bonds issued in US and UK recently , having difficulties in meeting their objectives because of a lack of interest from foreign investors .

Bond market vigilantes saddle up


James Saft April 10th, 2009

Source .:http://www.reuters.com/ Efforts to reflate the economies of the U.S. and Britain are running into one potentially major problem; the bond market

I will also add that i read an article a few weeks ago, i don't remember the exact reference , but i remember it was in the french press about large enterprises rushing to the markets in order to finance themselves before european governments hit the markets with some $800 billion worth of bonds before the end of the year . The logic of it being that credit might be harder to get and even more expensive !!! as the year goes on .

I think it tells us something about the confidence of the public and the enterprises as well as towards credit, for the rest of the year .

It's also ( relatively to the lack of appetite of foreign investors for US or UK bonds ) a statement on the perception of the value of those two currencies as well as the safety of the value or of those bonds, in those two countries in mid term future . Therefore it seems to support the thesis of higher inflation in a foreseeable future .

For mainstreet inflation appears to be common sense ,and in order to avoid this for those countries relying " heavily " on borrowing to stimulate their economy it will require some pretty tricky policies or some kind of sommersault with a special twist to it .

That's probably why most people , middle class workers especialy , feel they ear that inflation train commin' . Somehow we seem to ear it whistling somewhere in a near distance .

Hyperinflation would probably result from some very bad policies when comes the time to withdraw some of the money innondating the streets ( i should probably say the banks instead ) right now ,let's hope that does'nt happen .

And if we make it through this with relatively low inflation , without deflation getting ugly ,or a stagflation situation for a decade or so then we can canonise those people monitoring the economy of those countries, but that's the least expected conclusion in the book of the future or so it appears in my crystal ball...

The words i seem to read in my crystal ball are spelling out " Murphy's law " . There are just too many conflicting interest heading for a collision.

Along with common sense Joe i bet on inflation and my theory as i stated before is tha China is slowly but surely getting out of US bonds as low profile as possible , i think they'd be stupid no to , but i happen to think on the contrary that they have acces to a lot of brain power .