Logic check – something can be drastic and simple. Drastic does not imply complex. The thrust of your argument is that government will have to exert more control over the economy to fix it. Fact check – since this crisis heated up in 2008, the government has drastically increased its control over the economy. Results not so good. Like I said, the quality of the ‘arguments’ will vary.

Beyond that obvious point … it’s August! Also known as the doldrums of the hockey year. The folks who run this site are obviously sprinkling in a few posts that wouldn’t show up in November. No harm there.

And finally, you’re apparently Canadian, so just relax. No matter how this debacle plays out, Canadian hockey fans come out the winners. There’s nothing Gary Bettman can do about the exchange rate. Now go crack open another Molson, eh.

I understand the theory, but at the end of the day, if you double the money supply your money is worth half as much. In real science, there’s a fundamental law – matter can neither be created nor destroyed, only transformed. In economics, perhaps we should operate on the notion that wealth cannot be created on a printing press.

We spent a trillion of borrowed (or printed) ‘stimulus’ dollars to goose the economy along, and how’s that working out? The big banks are fat and happy, the Federal workforce has ballooned (that’s productive, right?) and every company with a lobbyist in DC was able to scam a billion here and a billion there. If you’re on the receiving end of those dollars, it’s great. For the country as a whole, we’re only deeper in debt.

And now the temporary (unproductive) stimulus is over and we’re waking up to reality. The government has a bigger chunk of GDP, unemployment is still above 9%, companies are more dependent on Washington (rather than consumers) than ever before, the USA is less competitive in the world, and economic growth has practically stalled. We’re only deeper in debt.

Tax revenues will be down as the economy slows, borrowing costs go up with a lower credit rating, and the debt burden gets even heavier. So what’s the solution? Print some more, kick the can down the road again and don’t address the fundamental problems. This isn’t a cyclical recession caused by the normal business cycle. This is a fundamental decline in the American economy.

At this point, the only way the debt will be paid is to monetize it. I understand why many people have no fear of this. People who are smart and have the means can make a fortune. The run-up in the stock market goosed along by the Fed and QE2 was great for the big players. For people trying to find work, not so much. QE3 will make the same people happy, which is why they’re calling for it. The results will be the same though.

The other alternative is to crank up the printing press in the basement of the Treasury building. That’s why you’re paying more for everything at the supermarket and the gas pump, QE1 and QE2. Next up will be QE3 and on and on until the dollar is no better than green toilet paper.

At that point, we’ll pay off the hard working Chinese factory workers who invested their money in US bonds with worthless dollars. American bondholders will be screwed as well. It’s default without having to actually say you’ve defaulted on your debts. Shameful really.

The only question is how inflated the dollar becomes. Will it cost $1000 to buy a shopping cart full of groceries, or $10,000? Or am I being too optimistic. We’re over 14 trillion in debt and climbing fast. There’s no credible plan to change that. But like it or not, change is coming.

Small market teams in the USA may become economically untenable. This is a boon for Canadian teams. I used to think NHL hockey returning to Quebec City was ridiculous. Now I think they may have their choice … Phoenix, Florida, Columbus, take your pick. And the NHL will be grateful. Hamilton … there may be hope for you yet.