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Thanks for the ping, I have to say I read half the thread before I looked at the dates and realized it wasn't recent. In fact I was shocked to see it started in 2006. On the topic of housing bubble burst or trickle I think we know the answer to this now. Still I don't recall seriously considering the down side of housing bubble in 2006 other than not taking the price the county told me my home was worth very seriously. On the topic of "Big Picture, down the road" only God knows. Having said that I see things in the short term that really have no option. Zero or McLame would have both had the same problems and with limited options chosen pretty much the same responses. The big thing in the short term is that while we at Free Republic are all aware that the ONLY thing that wil lift our country out of the coming derpession is to cut gummint regulation and cut taxes. This Keynsian excuse of a "stimulus" is nothing more than the libtards cynical way to finance every libtard wet dream for decades and has no prayer of actually helping and will in fact draw resources and people from projects that would actually be helpful. So why are the libtards pissing in the swimming pool in which they too have to swim? Because they can't survive the backlash from their base if they turn into Reaganites on a dime. So trillions of funny money will be injected into the economy for foolish projects that can't possibly gain any traction. The one thing they will accomplish is hyperinflation. The one poster above said that gold will test 500 dollars soon and that is the post that had me checking the dates because gold burst through that DMA long go. Curious that the heaviest of elements can "float" in the Tsunami of hyperinflation and ride above the storm. What will the world do to respond to these things that are inevitable? In the recent past the US economy has been 60-70% consumer driven. This week I suspect that is down quite a bit, perhaps to 10%. People, real people, are losing jobs, real jobs. 401 money evaporates and it is surreal because it wasn't "real" money anyway but when real people can't put a roof over their family's head or food in their belly problems aren't theoretical any longer. I read that people remained orderly during the "Great Depression" because we were (largely) a "Christian" nation and people blamed themselves for their misfortune. This is no longer true. Will there be riots when the welfare classes aren't provided for? Will there be riots when the taxpaying classes can no longer bear the burden? Perhaps I am getting ahead of myself here but I skip to the parts that are most dangerous perhaps because in danger is opportunity. In the interval we have the Treasury bubble Schiff discusses. How do the nations and individuals that hold these Treasuries respond? What are their options? My inclination is that they should get out quick because only the first out will get out with their skin. The middle of the herd will get trampled and the last will get eaten. Are there other options? I suppose. Let us say (I heard Walter Williams talk about this once) that gummint doesn't have to "collect taxes" to raise resources. If each citizen agreed to destroy the same amount cummulatively that the gummint printed the effect on the economy would be neutral. Suppose that the amount of "value" vaporized in the 401k meltdown was equal to the money printed by the Fed. I suppose the impact might be stability rather than inflation. If so then the Keysians are right. If this were true then gummint could just print money in response to any social distress or injustice and everything would be rosy. We all know this can't be true so I suspect the effect will actually be quite inflationary. Will the current holders of US Treasuries continue to support the fiction of US stability indefinitely? Good question and even Schiff doesn't seem to know the answer. If they do they may see the value of these funds dwindle to nothing as our dollar slides into the abyss. Can they ride it down and then walk away? How far down? Who are these people? Well I suspect that the big players are China, Saudis, and the other gummints but I supect the 1.3 trillion non-gummint dollars invested last year in Treasuries were the fund managers who were desperate to maintain the value of their funds after the petroleum futures scam they were running on the rest of us collapsed. In other words the previously 401k now 201k investments of plain US citizens. So if the Fed quietly "makes whole" the foreign holders of US Treasuries and leaves the poor schmucks living here holding the bag it is gonna leave a mark. I suspect something like this is in fact what is quietly happening right now. So the short term sees foolish stimulus, wasted opportunity, hyperinflation, looting of the wealth of the US, depression, social upheaval as the welfare classes and the taxpayers revolt. The real question is how does Zero deal with this. Embedded in the DNA of liberals is gun grabbing. I am just not that smart and all the above is painfully obvious to folk like Rahm Emmanuel, et. al. I don't believe our military or police forces are going to be onboard for this painful task. It is pretty easy for Zero and Emmanuel to give those orders but much harder for the poor slobs who will have to attempt the feat. How does Zero responds when that happens? Again I get ahead of myself. I am sure you are asking why does this have to happen? Why can't we as a people just wake up and just vote the libtards out in 2 or 4 years? As I write Pelosi and Reid are trying to turn 20 million illegal alins into Dem voters and the entire point of the "stimulus" is to buy their votes. Also in the works is a bill to repeal the 22nd Amendment and give Zero the Presidency for life. Might as well start refering to him as "El Maximo Jefe". Even if the Repubs weren't so disoriented they can't find their ass with both hands there will be no beating ACORN funded with billions. So how does Zero respond on that day when he looks out the window and social order is descending rapidly into chaos? I have a feeling that as slow as the UN has been to respond to things like Ruwanda and Darfur they will be able to quickly mobilize millions of chinese soldiers willing to "endure the hardship of enforcing civil order in the (formerly) US territories". I could be wrong and there are several points here that I can see branch off into other options but the options are to me less likely. I suppose that many would read the above and be horrified. I am quite hopeful. I believe that this is the only option for us to regain our country. I believe that if we turn to The Lord and ask his help in returning our land to the values it was created for that he will aid us in the face of our enemies. It will be a hard road but we have brought it on ourselves. We have let idolators demand the public space in our land and He makes it clear that the price of doing so is severe. So I long for the day. Μολὼν λάβε