Sharky:

Though I agree that the wisest policy would be to deal with the excesses which have accumulated in recent years, it is clear that the political structure and the central bankers do not agree. Sure there will be people that due to their economic excesses will be sacrificed to bankruptcy and likely a lot of them. However, those who did not gamble away their security on crazy real estate deals, and do not falll into a state of spiralling long term unemployment, will survive to battle in the environment of upwardly spiralling inflation once the fiscal stimulus of fiat liquidity seeps into this market. This fiat liquidity will result in declining western currencies. Remember, China's bail out is only costing them a percentage of their US$ holdings. And they are spending those US Dollars before they depreciate in value. While we in turn, can only print more fiat dollars and euros.

Meanwhile, we in the west, have lost our hunger for a better life, having already attained it. If our hunger to compete does not have a resurgence, we will not in any true sense economically recover. Thereby, dooming our economies in both relative and real terms for a considerable period of time.

Canada can escape some of this pain through their extremely strong position in natural resources which are and will be in increasing demand by the developing world. Here is where Canada's oil and other natural resources come in.

Meanwhile, there exists massive legions of peoples in the developing world who are truly hungry for and desirous of joining us in our prosperity. And they will!

Brian