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Derek, That link was amazing. It shows
what Bill Bonner, and the Daily
Reckoning have been predicting on
basic common sense principles for a
long time. You can't build an economy
on consumption, especially if the
consumption is debt based. San
Francisco is particularly suspect to
rising interest rates as so many have
used thier houses as ATMs.Perhaps,
the death of round Table is a sign of
economic stress starting on the lowere
rungs. The dependency of the exonomy
on ever rising debt to fuel consumption
is why the Fed cannot let the housing
bubble burst. They will stop raising
rates and probably start lowering them
to prevent a deflationary collapse.
Inflationary expectations will rise and
Gold will fly. Or as the Mogambo puts it
" W'ere freaking doomed!!!!!" This is
the inevitable end game of fiat
currency. It always ends in run away
inflation followed by deflationary
collapse. Always has, always will.