If the Republicans make good on their campaign promises, we will see cuts in government spending and an end to fiscal stimulus. Given that short-term stock market performance is very much dependent on such government assistance, the current rally is hard to fathom...
You bet. The author is my step brother. I remember when we were in the college dorms, we would have discuss for hours the likes of Mises, Rothbard, etc...
When rates go up, the cost of borrowing goes up, this slows economic activity down (you are right). Rising rates can be seen as inflationairy (or that inflation is here) so prices on SOME things are high (these "things " tend to be things you need, like energy/fuel, food, etc), but prices fall...
Things are getting pretty interesting with silver
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/12/8_Turk_-_Swiss_Bank_Client_Battles_Over_2_Months_For_His_Silver.html
Andy
Austrian economist and Mises scholar, Robert Murphy, offers a sane view of Bernanke's actions.
http://themarkettraders.com/content/robert-murphy-bernankes-battle-deflation
In msm, deflation gets a bad rap.
Andy
Great Debate
http://finance.yahoo.com/tech-ticker/round-two-harrison-vs.-pento-in-debate-over-inflationdeflation-535693.html?tickers=GDX,GDXJ,TNT,TLT,QQQQ,TNX,^GSPC
Andy