Friday, November 26, 2010

The Rules Of The "Multi-Trillion Shell Game" And What To Expect Next

http://www.zerohedge.com/article/sean-corrigan-explains-rules-multi-trillion-shell-game-and-what-expect-next

"under the rules of this multi-trillion shell game, the sovereigns guarantee the ECB which funds the banks which buy the government debt which provides for everyone else's guarantees."

"...The latest move to contain excess liquidity and the forceful measures that the central government has taken to stabilize prices show the determination of Chinese policymakers to fight inflation. Though these moves may not be enough to tame inflation once and for all, they are a good start before more aggressive actions become necessary to battle inflation that is unlikely to end anytime soon, as debt-laden rich countries keep flooding the world economy with their newly printed money."
While the developed world continues to inflate with quantitative easing, the emerging world will apply quantitative tightening to ease inflationary pressures.  This may cause a temporary pause in rising prices of commodities, including precious metals.

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