China sets up largest gold fund, page-43

Mortgagues are traditionally margin loans... although the Americans have a tweak in that they just foreclose and cant go after your other assets. Still, the better the redbook survey now the more painful the spike in foreclosures that accompany higher rates.

Bonds were sold at auction yesterday and today. In fact even with the threat of discounted coupons people still bought two year treasury notes today. That is just plain naive and the higher the yields go the more worthless the older bonds become. People sell on the way up. Thats how the bond market goes.

And equities are predominantly margin loans too. When money is free to borrow and invest then prices rise. Make money more expensive and the prices will fall due to lack of demand. If liquidity dries up then the equities house of cards falls.

Whatever money didnt follow Europe will depreciate when left in assets in America when rates rise. When this happens people look to assets that appreciate in troubled times, a precursor to the business of precious metals and precious metals thriving.

The question remains is if the raising of rates at this snails pace is in fact too rapid? Or is it too slow, which lets debt climb higher? At 102% of gdp, government spending has just been pulled back and the us government are running a surplus as of last quarter. Are the hands of the people going to be safer hands than the government?

Please tell me what a pig yard is?