The market needs deflation, as the natural end of excess, says Barry Brownstein. If we try to avert it by intervention, we will end with something much worse – hyperinflation.

“If, on the other hand, the reactionary forces prevail, more money will be thrown after bad; foreigners will withdraw from our capital markets; and eventually, a hyperinflation will begin. In that terrible scenario, it is likely that the United States will split apart; and many cities will descend into anarchy. You can see why I prefer the deflationary depression.”

And the Republican hold-outs in the House came up with a few ideas of their own:

*Suspend capital gains for two years (boosting global competitiveness and upping stock prices)

*Denationalize and privatize Fannie and Freddie
*Waive mark-to-market”

*Strengthen the dollar”

That’s from a post by Deroy Murdock at Human Events.

Comment:

We’ll get one of those – mark-to-market will go. And maybe some tax cuts. But don’t hold your breath for a strong dollar or privatizing F&F. My bet’s on hyperinflation…