Bailouts will only delay the inevitable by a year or two. Unless the government plans to bailout states yearly. Then the whole system crashes with inflation in double digits.
The inflation will happen when Europe increases their rate from negative to 1%.
I hope your analysis is correct.
If the GOP teams up with the Democrats and bails out the Blue States, your scenario probably can't happen.
Bailouts will only delay the inevitable by a year or two. Unless the government plans to bailout states yearly. Then the whole system crashes with inflation in double digits.
The inflation will happen when Europe increases their rate from negative to 1%.