Research shows that even with the current dramatic deterioration in G7 government finances we can expect worse to come (Aftermath of Financial Crisis, Reinhart and Rogoff, 2008).  Over the course of the typical banking crisis government debt levels rise an average of 86 percent in the three years following.  According to Reinhart and Rogoff, the rapid increase in government debt has been a defining characteristic of the aftermath of banking crises for over a century.   The question that will inevitably arise is that if investment demand is not present for the huge debt issuances that this current bail-out will entail, will the worlds central banks revert to monetizing their governments’ debts – or in simple terms printing the money.   Based on the US experience, it appears that money printing is the favoured option.  The US Federal Reserve recently disclosed that it purchased half of the newly issued US Treasuries in the second quarter of 2009 – all of which would have been purchased with newly created money – direct debt monetization.