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http://dharmajoint.blogspot.com/2009...-recovery.html
"Seeking the safety of power, the financial oligarchs have made what I see as one last gamble- one that, it seems to me they will soon lose- they are channeling flows into government bonds, after taking a nice chunk off the top, for their trouble. So long as the state can borrow cheaply, the financial oligarchs will be safe. Sadly, for them, decades of open capital markets and chronic deficits means that they are not the final arbiter of price in their last hope market. When the BRICs (Brazil, Russia, India and China) discover (and act thereupon) that real world investments offer greater and more durable returns than US Bonds, the financial oligarchs will lose the protection of the state."
"Seeking the safety of power, the financial oligarchs have made what I see as one last gamble- one that, it seems to me they will soon lose- they are channeling flows into government bonds, after taking a nice chunk off the top, for their trouble. So long as the state can borrow cheaply, the financial oligarchs will be safe. Sadly, for them, decades of open capital markets and chronic deficits means that they are not the final arbiter of price in their last hope market. When the BRICs (Brazil, Russia, India and China) discover (and act thereupon) that real world investments offer greater and more durable returns than US Bonds, the financial oligarchs will lose the protection of the state."
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