Originally Posted by Phil Hoskins
Since I doubt it will work except in the short term, anyone care to chime in on what happens if 6 months from now it becomes clear this isn't working?

OK Phil, you are on record. See you in six months/

And in direct response to your question... if this does not work (which I admit is a possibility)... there is absolutely no prediction that is possible. As Iss separately posted

Quote
I think you are correct in your guess, Ardy (muddy landing not crash). To some extent it may depend on how 'divorced' the financial sector is from the economic sector. But, I also think the government will not have enough "juice" left to do this again in another few years. Of course, the problem with being in the frothy part of a collapsing bubble is that a system can quickly go into a non-linear chaotic state with little to no warning and from the mildest of nudges. Time will tell.
Yours,
Issodhos

If this does not work, we enter a chaotic state where nothing become predictable and almost anything can happen. Unfortunately a viable economy depends upon exactly the opposite environment.

But, as I have said, I think that things will work out sort of OK.... although it seems possible/likely that world confidence in our economy and currency will be irreparably damaged.

"It's not a lie if you believe it." -- George Costanza
The whole problem with the world is that fools and fanatics are always so certain of themselves. --Bertrand Russel