Flooding the market with cash has not yet led to inflation, because the recession created a Grand Canyon of underutilized capacity to be filled first. When it is, though, expect inflation, and lower prices for long-term bonds. For a parallel situation, consider The Great War Loan Conversion, described in my Famous Financial Fiascos, where bond investors lost 99% of their money.

There is a greater demand for medical services in America than can possibly be paid for. The tab is already 16% of GDP. Half of the 16% – more than a day every two weeks – goes to pay for each person’s terminal illness, the last few months of life.

The Afghan economy is at a dangerous crossroads. A strong market economy could very well survive without democracy in Afghanistan, but the fledgling democracy in Kabul stands little chance without a vigorous economy.

In the old days in the investment business when you were studying a company you would sometimes send a young fellow out back of the factory with a clicker to count the widgets emerging to be shipped. Easy enough to check production. Quite different now!