Gold and the Great Easing

The world has been in Easy Money mode for about 100 years.   But Easy Money has been ramped up over the last 40 years beginning with the Reagan Easy Money Revolution, and then the Bush Easy Money on Steroids Goldilocks Economy and now the Obama I haven't Any Idea What to Do but More Easy Money Hail Mary Economy.

But you ain't seen nothing yet.  Despite the brave Republican blathering about reigning in the spending on food stamps and Pell Grants - (oh yeah, and the one-desert-only rule in the Congressional cafeteria) the Central Banks of the World are in the process of embarking on the Mother of All Easy Money Helicopter Drops.

US Fed Governors have been out en mass lately trumpeting the coming of QE3- while operation Twist lays the groundwork by artificially depressing the official measure of inflation.  European Central Bankers are simultaneously crafting a massive Easing in the form of Euro-backstop fund to buy up bad European debt.  And even the Chinese are positioning themselves to help out by signalling that their economy is "cooling," thus giving them cover to add massive fuel to Easy Money Fire about to engulf the world.

It's coming because the Central Banks realize that without this Massive Easing the global economy is in imminent danger of collapsing.  They see it.  They know it.  They're hell bent on stopping it.

And it will add rocket fuel to the only debt free currency: GOLD.

But will all this easing work?

Sure - for a month, or three months, or six months, or even a year or two.

But then what?  Remember that EASY MONEY=DEBT.  How long can they stave off a Debt Crisis with More Debt?  What happens when global debt reaches the quadrillions?  What happens then?  What if Peter doesn't kill the wolf asked Grandpa?  What then?