http://channel-surfing.blogspot.com/2009/11/yes-we-still-have-broken-markets.html
Saturday, November 28, 2009
Yes, we still have broken markets
Hank Kalet
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Two quotations from a story in The Washington Post on the financial crisis coming out of Dubai make it clear that, while the recession officially has ended, the economy remains very badly broken.
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Our biggest economic danger is a two parter — imho.
First, the Chinese may stop buying our government debt. That, at the very least, will send interest rates into Carter-level numbers.
Second, (and more insidious), OPEC prices oil in other than dollars. Most likely will be gold. (imho) The implications are that gas will will be at unheard of levels. Think Argentina or Zimbabwe. Gas will be proportional to the price of gold. As the value of the dollar collapses.
Our congress critters think that they can spend like there is no day of reckoning. That’s what’s broken.
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Reinke Faces Life 