Making sense out of the bailouts

Today will be announced the second in what will be a long sequence of bailouts.

Eventually all the easy money will reignite debt-fueled spending and lend a boost to our consumerist economy.

Just as the fragile economy begins to pick up, massive inflation will set in as all that extra currency begins to compete for the same raw materials and energy resources.

Our government will be faced with the issue of whether to quickly kick interest rates into the high teens and twenties to rescue the dollar and plunge the economy back into severe recession, or to permit the economy to pick up steam and in the process though the dollar under the bus.

For some reason I think we will see option number 2.