How long can this go on?

Communism fell because its intellectual defenders could no longer sustain the lies it was built on. Just before it fell, its defenders and Liberal collaborators declared it to be "the wave of the future." We may be coming to a similar junction with soft Socialism we call "Liberalism."

In that genre we have the article of Catherine Boyle at MSNBC that asks the question: How Close Are We to a New Great Depression?

Her answer? Decoupling money from gold allowed Central Banks to flood the world with credit. As more credit is added, its ability to stimulate is reduced. She figures though that another and huge round of stimulus may hold off Depression for another ten years.

We seemed to have arrived at a temporary plateau of sorts, where the EU crises is being treated with half measures, the American economy is slowly sinking, gold is being restricted to the 1,550-1,620 range and the whoppers the Media tell get bigger and bigger. For example, we are being told that the Deficit totalled $900B during the first 6 months and is expected to rise only by $200B till the end of the year. Really?

Larry is still sticking with his prediction that gold will sink before the big increase. And KWN reports that gold swap dealers turned net long in anticipation of a big rally in gold. Go figure.