Free Republic

..The golden age of liquidity is drying up...Our guess is that we will see the results of this fundamental shift towards tighter money over the next decade or two... We don’t know what this portends, but yesterday Ben Bernanke slouched over to Congress. He must have worn lifts. For somehow he managed to remind the world of old Paul Volcker. We remember when the giant Paul walked the earth over at the Fed. It was a different world back then, with consumer prices rising at double-digit rates, and interest rates over 15%. But Volcker stood up and did what a...

How the Credit Bubble Boat will sink: by hitting the iceberg of inflation. Grab your life jackets... Yesterday, driving back from a horse show in Bath, we stopped for gas. Britain has gone metric in order to stay in harmony with her European trading partners, but she still lists distances in miles. Gasoline is measured out in liters, just as it is in France, but it is priced in pounds. The price for a liter of diesel fuel was 99.9 pounds. If we did the math right, this is equivalent to about $6.50 per gallon. By comparison, we read today...