Giving $7 Trillion worth of bailouts with money we have to borrow is definitely inflationary in the long run.
It just might take a year or two to become apparent.

In Europe, you have a bunch of puppets who have taken forever and a decade to deliver some solutions. The structure of the EU was not meant to handle the death blow of a financial crisis and its quite evident. Genius Trichet has just NOW recognized that inflationary pressures are lessening yet still sees it as a threat! European countries – including that Britian that you mention – have enormous USD funding needs – USD denominated debts. This has thus caused the need for unlimited USD swaps lines – another kitchen sink to bail them out.

As far as war – no money, no love – you get the picture. I think its a fair assumption that in the midst of a financial crisis which has the potential of being the second or (hope not) first worst since 1900 – everyone is a bit on endge.

A note on Citigroup….I doubt your financial analyst skills are sharp enough to truly analyze the components of Citigroup’s balance sheet or exposure. If you did you would realize that the company has trimmed down its exposure to bad assets tremendously and far more agressively than competitors. Its far less levered than lets say the precious Goldman. Not to mention given its size and scope it has a tremendous amount of deposits to source from – much larger than others. Why do you think Goldman and Morgan are now bank holding problems? The attack on Citigroup’s stock began most recently with the failure of the Wachovia purchase – which was also failure of the Fed to enforce Citi’s and Wachovia’s agreement. Before that, Citigroup’s stock price YTD was certainly not the worst of the financial crisis. All in all I would suggest that you pray nothing happens to Citigroup – and educate yourself on the company and what their financial position really is among the rest. Silly rumor speculation on Citigroup could lead to some dire consequences for the economy as a whole.

Lastly, I think its important for you to understand that this crisis can certainly not be attributed to one company – and to make that claim or even allude to it is absurd and based on pure ignorance. It sounds like something that you would get off of your 10:00 news show. This problem that we are having is the result of a 25 year buildup in excess credit – caused by people who just couldnt seem to have enough. Banks didnt go out and hold guns to people’s heads to borrow more – they just wanted more. Its called greed. Citigroup – being the former largest bank in the world – would be bound to hold a great deal of this. This current crisis was set off by those toxic derivatives – but was bound to come. Our problem today was a two way exchange and now we are seeing the consequences.