Dr. Alexander Mirtchev, President of Washington, D.C.-based Krull Corp., assesses the short- and long-term implications of policies, in particular in the U.S., undertaken to counter the recession. Intensive government intervention in the private sector and financial markets has brought to the surface a range of issues likely to impact the restoration of the “social contract” between Main Street, Wall Street and the government. The “elephant in the room” – the specter of stagflation, economic depression and incipient inflation – is also a factor that can exacerbate the wider economic impact of worsening sovereign debt.