Ambrose Evans Pritchard may not always be correct: inflation rather than deflation, AEP, but he can spot a downer a mile off. His latest one is quite predictable; the large debt issuance from the ailing governments will crowd out the private sector, prolonging the credit crunch, weakening their cashflow, tipping more firms into bankruptcy and prolonging the downturn.
Governments are beginning to eat their own milch cows.