PETER SCHIFF ~ The Nightmare Before Christmas 12/12/2008

[peaceandlove]

The Nightmare Before Christmas
Posted by Peter Schiff on December 12, 2008

Source: http://www.campaignforliberty.com

"The Grinch is about to make an unwanted appearance."

Excerpt:

...in recent months, government has flooded the market with hundreds of new Treasury obligations and telegraphed its intention to increase the deluge even more. In response, both bond prices and the dollar have risen. This benign reaction has led many to the happy conclusion that the doom and gloomers are wrong and that bailouts and economic “stimuli” can be financed with deficit spending without any adverse consequences on interest rates or consumer prices. Recent action in the foreign exchange markets suggests these hopes will prove illusory. The renewed strength in gold, together with the long over due rupture of the correlation between the movements of foreign currencies and U.S. equities, is further evidence that recent market dynamics are changing.

Complete Article and Comments Here:
http://www.takimag.com/blogs/article...ore_christmas/