Maybe monetization is the way out of the sovereign debt problem. Trichet is buying crappy sovereign debt in the Eurozone periphery and it's working (at least today - yields are down, Euro is up).
Interestingly, while in the US the political mood has shifted from expansionary to contractionary responses to the crisis, in the Eurozone it's going the other way around. Maybe because Eurozone governments, who have at least some understanding of what is at stake, have to respond to their electorates for the economic situation, whilst in the US Republicans can win Congress and blame all the problems on the President. The transmission belt of popular anger through to economic policy is working in different ways in the two contexts, telling us something about how democracy conditions policy response.
Interesting times indeed. Help!