Multiple Bank Failures or Hyperinflation Anyone?

The Slog has a rather scary special report on Mervyn King's complacency in the face of rising inflation. Read it from this link, this sample will surely make you bound so to do:

Today, the interest-rate derivatives swap sector is worth $342 trillion. It is, by miles, the biggest market in the world.

The total global economy is around $58 trillion. And given that the Global worth of all the bourses everywhere is only $36 trillion, you can see why, if only a small number of bets were dumb, then it’s all over this time around. Not even the US has the debt credibility any more to bail that scenario out.

And as we’ve all learned to our cost in recent years, most bankers are arrogantly, recklessly dumb. Not only that, the signs are that not just a few bets have gone awry: both banks and multinationals are hooked into low-rate bets bigtime.