Michael, I read a research report that indicated that as a whole the banks have actually brought their leverage down to levels that are in line with 15 year averages. It appears that this leverage has been shifted from private to public sector. I think without a doubt all that has happened in the US is that we have kicked the can down the road.

In your view, Is it remotely possible that deflation occurs considering the banks are not lending and will probably be unwinding their leverage over the next couple of years? I certainly understand the inflation point of view, but have wondered if those who come from the Austrian School have left a scenario for deflation on the table. It seems that with all the money that has been created their has also been a counter balance of wealth destruction in assets. In your view how does this reconcile?