There are three arguments currently circulating in economic discussions. The first would be those like Peter Schiff in the video below that say we will see dollar destruction and hyperinflation.
The second are deflationists, like this one. They more or less say that bad debt is so large that there will be no recovery and that despite attempts to create new money, debt defaults will be so massive that all the money ascribed to bailout attempts will be consumed.
The third think we are on the road to recovery. In my opinion they've been smoking too many green shoots.
The first two scenarios could be compared to a large tree whose base has been chopped at until only a small sliver of wood supports the weight of the tree. The tree is evenly balanced and must soon fall, but the direction of that fall remains unclear.
Either way the tree must fall.
(Picture Geithner, Bernanke and Obama at the base of the tree, running from one side to the other, pushing one way, then the other and praying a puff of wind doesn't come along.)
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