The inspired Scriptures

The Old Testament or Hebrew scriptures were the scriptures mentioned in the New Testament writings.  In what sense are these inspired writings?  There have been a number of theories to explain this.  Were these writers possessed by God in a hypnotic state?  Did God verbally dictate every word?  Did God provide negative assistance to make sure that the writer did not make an error?  Is this inspiration retroactive?  Every word in the Bible is true if we understand the literary form.  There was a divine influence on the minds and wills of the biblical writers, but they lived and wrote in a specific time and place.