Hopefully we can explain this to people in our grassroots activities. This is why the economy is getting so ugly so fast. George Soros is saying this is the unwinding of a 60 year credit bubble. As Ron Paul said, "We are in a new era, believe it or not."
The unwinding of a credit bubble results in a Kondratieff winter. As the deflation and hyperinflation hits there is only one place to go .... down the pyramid. Most capital is now in T-Bills as their the 3m yields are down to 2.3% which is a negative real return of 1.7%. The Fed is lowering the Fed Funds rate trying to wield a club to beat people out of cash.
The Fed wants the capital to go into the equity markets. But people will not go up the pyramid but instead down and into different cash. Cash that is denominated in gold instead of US$, Euros, Pounds, etc. There is already an alternative gold currency that can be used in daily transactions that is 100% backed by gold. Join the Ron Paul Gold Rush!
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