FT Alphaville  has a note from Bob Janjuah of RBS which neatly sums up everything our leaders have been telling us is needed to avoid monetary armageddon whilst giving his view on what they are actually doing and where it will end ..

The Greece bail-out, the goings on at the IMF involving the huge build-up of ‘new bail-out’ reserves, and all the talk in the UK abt fiscal repair based on fantasyland ‘efficiency gains’ are the latest evidence that policymakers EVERYWHERE have no appetite to be brave, to be strong and to do the right thing. It seems that it is clearly too painful to do anything else. Instead, policymakers EVERYWHERE seem to have decided that the only way out of the hole is MORE DEBT, MORE DEBASEMENT, MORE BAILOUTS, ugly INFLATION and/or even uglier STAGFLATION, FAKE AUSTERITY, ZERO STRUCTURAL ECONOMIC REFORM, & MINIMAL REGULATORY REFORM.

We are trapped in some horrendous Keynesian/monetarist nightmare, where policymakers, aided/abetted/advised by their buddies in the media, in the lobbyist cabal and in financial system, have YET AGAIN decided to go down the route which merely delays the problem/pushes it down the road, but which virtually guarantees that when the NEXT bubble collapses (I assume it will be the Global Government Debt/Bond Bubble and/or the Global Fiat Money/Paper Money/FX Bubble), there is NO pleasant way back.

Which leaves you wondering how, when and where it will all start to go horribly wrong.