ApocalypseTV (4/10/10)

Thirty-five percent unemployment? This is John Williams's forecast, which he relates to Eric King in this highly valuable podcast interview.

The Great Inflation/Deflation debate rages on, and this Yahoo Finance set of videos features each side's most well-known representatives: Marc Faber in one corner, MISH in the other: 

Marc Faber and Mish Debate Whether Inflation or Deflation Will Be Our Undoing @ Yahoo! Video

Who's buying the United States government's short- and long-term debt? Put in starker terms, who's financing Obamacare; the Stimulus; the bailouts of Wall Street, the auto-sector, and commercial and residential real-estate; and the two big wars in the Middle East and its Empire around the world?  Who else? The FED, of course, which, as Art Cashin describes it, is entering Treasury auctions wearing a moustache and raincoat.  [h/t: Ed Steer

Last December, Tyler Durden warned of a "Dark Gray Swan" event of "no more foreign dollars with which to buy treasuries."  I don't think we're there yet; indeed, I think there's going to be another sharp turn upward in the bond market, and a terrifying turn downward in everything else, before inflation and the consequences of money printing starts to set in. Regardless, the fact that the Federal Reserve has become the lender of last resort to the U.S. government is of grave importance.