Maybe the dust is settling in the gold mines...? Because:
The notion that The FED can "save the dollar" and send commodities plunging with another 25 BP rate hike is a little nuts...
Considering:
1. The unfunded, unwinnable, unpopular and unjust war spending.
2. The crashing house price bubble which will impact Freddie and Fannie disasterously, even if their books are straightened out in time. Because, a Foreclosure Fest looms in many areas...
3. The Big Pension Dump as firms try to become "competitive" by letting the FEDs pick up their pension costs. Not to mention the health care costs for their illegal workers.
4. The K-Street Kongress which is letting the lobbyists write the spending bills.
5. A social safety net that is in tatters because of incompetence and milking of the system by Big Pharma, Health Care Providers and Insurance Companies.
6. A president that has never vetoed a spending bill...not even the Medicare Drug Fisasco which is coming apart at the seams...as thousands of "providers" seek a seat on the Federal Gravy Train.
7. The Greenspan Bubble Years...with its massive inflation of assets of every kind and stripe...now including oil and gold! Greenspan never saw at asset he didn't want to start a bubble in!
8. Crooks in the real estate mortgage game...Shades of the S&L Crisis...which could look like small potatoes after this bubble breaks.
9. A world that Hates Bush...to be blunt. And that causes real trouble for all Americans overseas who try to do business in a hostile environment.
10. Finally, something there is that does not love an older reserve currency... The dollar has had a great run from Bretton Woods 'til now...not without some minor unpleasantness...from time to time. But old reserve currencies never die...they just start to look like the British Pound... Reserve currencies have a shelve life...and the dollar is way beyond it's expiration date. Something new is probably necessary...
