Where Are We?

Chronology:

1998: Tigers Blow Up: G-8 freak the fuck out.

I suggest ALL of you watch Bill Clinton's CNBC interview: Bill Clinton is the smartest guy in the room: he GETS IT, 100%. A model of probity... perhaps not, but that's irrelevant in this sordid world: he gets it.

http://www.cnbc.com/id/15840232?video=1267861215&play=1

Bill mentions in the interview that leaders (*cough* bankers ) agreed to begin developing meaningful and sustainable domestic demand ex-US/Europe.

Why, you ask? Because bankers can't make INSANE sums of money without assets to inflate( we could go back to 3-6-3, but that is sooo boring!). The problem we have now, too, is that governments have such high expectations of growth and a duly voracious appetite for consumption themselves that THEY ALSO want asset inflation.

The result is that the bankers and government are, in essence, the same, since they both need each other. The government keeps the infrastructure in place for the banks to operate, and the banks direct capital where it can most efficiently (in theory, folks!) be spent.

This is the underlying thesis behind the global commodity boom. Annoying that no one bothers to articulate it...