Spending Cuts in the Age of De-Leveraging

As we were saying yesterday, there are several schools of thought regarding the present economy.

1) We're recovering… (Geithner, Summers, et al)
2) We're not recovering…we're headed into inflation (Faber, Stansberry, Casey)
3) We're not recovering…we're headed into hard-core deflation (Prechter, Shilling)

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