The Weak must go to the Wall

From the same article referenced yesterday, I missed a delicious little tidbit: As Housing Goes Bust, Lenders Become Predators?

Mortgage debt rose by $4.7 trillion from the end of 2000 through the third quarter of 2006, according to the Fed's Flow of Funds report. "We created as much debt in housing in the last six years as we did in the prior 50,'' Carson says.

NICE!!! MISSION ACCOMPLISHED!

For anyone who still believes in "inflating away the debt", what are the chances that the Fed can inflate away $4.7 trillion in the correct time-frame? (less than 2-3 years.)

Theoretically, it could happen. Look at Argentina.

But that would spell the end of US financial hegemony meaning the powerful would get punished.

Nope! The weak must go to the wall, and the banks will get bailed out. That still spells deflation.