THE BUBBLE HAS BECOME THE BE ALL AND END OF OF THE AMERICAN ECONOMY...
AS CAN BE SEEN IN THE RATE OF INTEREST PAID ON SAVINGS... IT'S LESS THAN .5%...!! ONE HALF OF A PERCENT...
THIS.... WITH THE MASSIVE MONEY PRINTING FOR THE "NEW" STOCK MARKET BUBBLE...HAS CAUSED MANY PEOPLE TO GO INTO GOLD...
OF COURSE, EVEN THE SLIGHTEST HINT OF "AN INTEREST RATE"...EVEN SOMETHING LESS THAN SAY, ...ZERO...
WILL CAUSE A MASSIVE PLUNGE IN GOLD AND A RUSH INTO THE DOLLAR...!!
GOLD WILL DROP LIKE A ROCK...PROBABLY $50 PER DAY ...! AND THE DOLLAR WILL RALLY MIGHTILY... AS THE "GAMERS" RE-JIGGER THEIR SHORT TERM BETS...EN MASSE...!
BECAUSE, THERE IS NO SIGN YET THAT THE GLOBAL ECONOMY IS READY TO START TREATING THE MONETARY DISASTER IN THE US...RATIONALLY...!
THE PROBLEM WILL BE WITH THE FIRST INCREASE IN RATES...
THE CONVENTIONAL WISDOM IS THAT ONE RATE HIKE .... MEANS MORE ARE COMING... AND THAT PERHAPS THE FED FUNDS RATE WILL RETURN TO HISTORICAL RATIONALITY OF AROUND 5%...
BUT 5% IMPLIES THAT THERE IS A "REAL ECONOMY"...NOT JUST THE VARIOUS ASSET BUBBLES...
WHICH OF COURSE IS NOT WHERE THE US 'ZOMBIE' ECONOMY IS AT...
LIKELY THE FED'S SLAVISH DEVOTION TO "IT'S BUBBLES" WILL KEEP RATES MICROSCOPIC FOR THE DURATION...UNTIL THE FINAL COLLAPSE OF THE DOLLAR...
AND REMEMBER...FOREIGNERS MAY NOT BE THAT IMPRESSED WITH A 1% OR 2% FED FUNDS RATE...AND COULD STILL SELL THE DOLLAR IF THE FISCAL DISASTER CONTINUES APACE...AND REMEMBER...THERE WILL BE NO TAX HIKES ON "THE RICH" WHO ARE THE ONLY PEOPLE WHO HAVE MONEY IN THE US TO TAX...!
THAT HAS BEEN BOUGHT AND PAID FOR BY THE CORRUPT CONGRESS...WHICH WILL NOT BE MOVED...
SO WHEN THE TIME COMES TO BASH GOLD...AND "SAVE THE DOLLAR"...SOME PEOPLE MAY NOT DRINK THE KOOL AID...
BUT WALL STREET WILL...AND THE PLUNGE IN GOLD WILL BE A ONCE IN A LIFETIME BUYING OPPORTUNITY...
REMEMBER THE LAST TIME THIS HAPPEN BACK IN THE 1970'S...IT TOOK A 20% PRIME FOR ABOUT ABOUT SEVEN OR EIGHT YEARS TO "BRING THE DOLLAR BACK...!"
THE "RALLY" IN STOCKS IN 2009 WAS COMPLETELY AND TOTALLY "FED FINANCED"...IT HAD NOTHING WHATSOEVER TO DO WITH THE REAL ECONOMY...!!
NOW THAT IS SCARY...! VERY SCARY FOR 2010...!
