Doug Noland - Credit is Gold #1 and Icebergs

``Savers, investors and speculators will indeed learn painful lessons in China Credit -- and it's difficult for me to envisage this learning process going smoothly. "Credit Equals Gold No.1" is the proverbial tip of the Iceberg for a Credit system today suffering from a historic gulf between saver perceptions of "moneyness" and the poor and deteriorating quality of much of underlying system Credit. Incredible quantities of finance have flowed freely into risky Credit vehicles with the expectation that the banks and governments (local and central) will not allow losses nor ever tolerate a crisis. This is precisely the recipe for Credit accidents and even disaster.''