Confidence Data Hurt Dollar, Euro - WSJ.com
The question is where is the tipping point.
There was a tipping point for Greece and for Ireland and Portugal.
It's Alice through the Looking Glass that there is always magic money to fund government spending and deficits with no consequences.
To date, the consequences have been slow growth and stable to rising unemployment. The interest rate hobgoblin has yet to appear (except for Greece, etc.).
But, like the bubble in US housing prices not too far back, the bubble of the cross in interest rates between rewarding savers and costing borrowers is still a vast gap that is only growing bigger.
The closing of that gap can't be a pretty sight - however, it turns out the gap will be closed with massive cutbacks, stupendous economic growth or significant inflation.
Gold's price today would suggest the latter is high up there in the range of probabilities.
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