Montreal Gazette- Mops-and-buckets approach likely to leave a big financial mess

(Op-ed by Tom Velk, director of North American studies at McGill):

"Over the next 12 months, the world's developed nations will borrow $10 trillion U.S. The lenders will get bonds, representing paper claims against future real goods and services. Canada's share in this borrowing binge is $265 billion. In addition, the world's central banks will issue at least half as much - perhaps more - in new paper money; creating another colossal mass of claims against yet-to-be available new goods and services.

"If the paper chase in pursuit of real stuff cannot be satisfied with newly produced things, already available things will go up in price. It is the law of inflation: If the quantity of new money and money-like claims grows faster than does the quantity of real stuff, prices for existing stuff rise."