Many things changed with the bursting of the Wall Street/mortgage finance bubble. For one, our "private"-sector credit mechanism was no longer capable of creating sufficient credit to sustain inflated real estate bubbles or the inflation-distorted bubble economy structure. For two, the US credit system decisively relinquished its status as the most alluring global "asset class". Years of dollar debasement had already worked to sway the inflationary biases away from the US toward energy, gold, commodities and the "emerging" markets and economies. The unfolding post-Wall Street bubble reflation has found - for the first time - the "developing" and commodities worlds supplanting the US as the favored destination for speculative finance. This is big...
