I was compelled to share some thoughts with respect to the "asset Bubble" debate. Actually, the subject matter is now little more than a distraction from more pressing Credit and pricing issues. Somewhat strangely, U.S. asset inflation is no longer the overriding concern. Instead, I ponder the ongoing issue of the current extraordinary financial backdrop: a global economy that continues to operate in a unique environment without a functioning monetary regime. There is no mechanism – gold standard, Bretton Woods, or otherwise – to in anyway limit the quantity or quality of global financial claims inflation. It has become full-fledged unfettered "wildcat" finance unlike anything the world has ever experienced.

It is tempting to fixate on the asset Bubble issue. Yet a more pressing need is for the Federal Reserve and global central bankers to begin working towards the implementation of some type of functioning monetary "regime," with the intention of returning some semblance of order to international finance. And similar to anticipating new U.S. central banking doctrine, one can bet confidently that change will not arrive ahead of "post-Bubble impetus". No doubt about it, Heightened Monetary Disorder - the cost associated with the Fed’s U.S. Credit system bailout - is increasingly on display. Destabilizing speculation is returning with a vengeance, and it’s anything but limited to commodities markets.

Doug Noland is a market strategist at Prudent Bear Funds. Their website is www.prudentbear.com.