The markets are delusional again... Little can be done except to continue devaluation of the dollar to make the Dow "look good."
Foreigners are dumping bonds...and other US assets...as the FED seeks to provide liquidity for ever more asset inflation...even while the Toxic China Trade continues to deflate manufactured goods...
ONE BRIGHT SPOT...IF THE DOLLAR DEVALUES THE NOMINAL VALUE OF THE DOW; AND INDEED HOUSING MARKET PRICES MIGHT CONTINUE TO STABILIZE AT A VERY HIGH LEVEL...
BUT, THE WEAK CONSUMER IS HIDING IN THIS DATA...
STILL, THE XMAS SALES SEASON WILL BE HYPED AS USUAL...SO MORE HAPPY TALK SEEMS INEVITABLE.
AS LONG AS CHINA AND INDIA LIKE TO HOLD THE DOLLAR US DELUSIONAL THINKING CAN CONTINUE...BUT LET'S NOT CALL THIS A HEALTHY SITUATION...!
MORE DEVALUATION AHEAD...
A HIGHER DOW...AND PERHAPS ANOTHER DOUBLING OF THE GOLD PRICE LATER NEXT YEAR...
GOLD AT $800 HAS BEEN PREDICTED...BUT GOLD AT $1200 SEEMS DOABLE IN THE FACE OF MASSIVE DOLLAR LIQUIDITY...
THE DOLLAR BUBBLE IS ALL THATS HOLDING UP THE US ECONOMY NOW...AND OF COURSE THIS FEEDS THE RECENT TOTALLY STUPID M&A ACTIVITY...
