US Stuck in Inflation-Causing Positions

His goal was to bluff and bamboozle the world’s investors – notably China – into believing that the US had its finances under control. Once we’re out of this mess, he told China’s top man, we’re going straight. No more binges of EZ credit and wild government spending. We just need a little more of that old time medicine…just one more time…to get us through this dark night of economic downturn. But once the sun comes up and the economy is back on the road to recovery, trust me on this, America is going to balance its budget, foreswear Quantitative Easing forever, and join AA. No kidding. Cross your heart and hope to die.

But some habits are hard to break. The habit of getting something for nothing is one of them.

China wants Tim Geithner to explain the arithmetic - you know, how $12T of debt = $0 of inflation. He can't do it.