A treat to rejoin John Batchelor and Gordon Chang last night examining implications for China and the world of bursting bubbles. Interest rates across the planet have been too low for too long--virtually everywhere, we have built capacity far in excess of demand. Meanwhile, continuing advances in technology encourage replacement of human labor with machines and software. So, we have way too much debt, and not enough spare cash to bring the debt into balance without the inevitable and, this time, epic crash. Some politicians get this---one of these is Valdimir Putin (see his Davos speech in January 2009). Our President certainly does not get this. A blame game is in process, expect him and other leading leftists to start spinning the theme that the capitalist system is broken and cannot work. What other system has worked better? And, where are the enduring success stories following 6 years of a mixture of crony capitalism and crony socialism?