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Morgan Stanley economist Joachim Fels feels the EU and US are only deferring extensive debt re-structuring and replacing it with inevitable inflation.
EWING: "What’s more, though Mr. Fels did not go so far as to say that inflation would be a good thing, he also did not make it sound as if a modest rise in prices would be such a bad thing, either. Over coffee with a handful of journalists at the Morgan Stanley offices in Frankfurt, Mr. Fels argued that the European Central Bank and United States Federal Reserve are already exporting price pressures to the many countries in Asia, Eastern Europe or Latin America that peg their currencies to the dollar or euro."
AND...:"Inflation there will ricochet back to Europe and the United States in the form of higher commodity prices." AND...:"The reason they will tolerate inflation is that they are more fearful of deflation. Inflation is the devil they know, Mr. Fels said, while episodes of deflation have been rare."
