Tuesday, July 1, 2008

How to stop the Great Crash of '08

Find Freedom at www.FreedomsPhoenix.com: "How to stop the Great Crash of '08
By Spengler

The oil price has doubled in the past year because the US Federal Reserve panicked over risks to the over-leveraged financial system and flooded markets with excess liquidity. The world is willing to pay arbitrarily high prices to hedge against inflation, but the cost of inflation hedges drags down the world economy. Last week's spike in commodity prices and swoon in global stock markets points the way to a deep and prolonged fall in economic activity.

Breaking out of the death spiral still is possible. With mixed emotions, I propose a simple solution."

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