sorgmot

Some True Safe Havens Are Still (Surprisingly) Undervalued

Since 2005 US $ interest rates have been in a long term uptrend caused by investors in the dollar versus dollar demoninated stocks, bonds, real estate, commodities, and foreign currencies wanting to hold dollars themselves more and more as the years passed.

Why do they want to hold US$? To pay their US $ bills for food, health care, housing, and transportation costs. They once borrowed at the bank to cover these costs and thus forestalled a collapse in their living staandards.

Now they are selling US $ assets to cover these costs. And, as a consequence, the US $ value of assets and commodities and foreign assets is collapsing as the value of the dollar itself rises. When dollar prices fall, the dollar rises. The dollar bills in your pocket are gaining purchasing power day after day.

The US is now in a liquidity crisis and also a credit crisis. A credit crisis occures when lenders will not will not lend more money. A liquidity crisis when there is not enough money to pay the bills.

What happens next? More of the same. The dollar rises more and more against assets as US people sell more and more assets to pay their bills. Factories close and imports drop because there is no need for more assets since plenty of used ones are on the market. .

The US Governments should cut taxes and send out checks to private citizens. Instead it bails out banks by buying up bad debt. You thoqht that dumb and dumber only lived in Rhode Island?

Banks can not lend the money advanced from the US Government since loan collateral looses value day after day.

Yes, people will want to sell gold to raise US $'s just as they sell their stocks and bonds.

We have invented the perfect method for melting down the earth world economy. Thank you social engineers and MIT economists.

No wonder the econ boys and girls want to ban short sales.since they have made them so profitable.

Good Luck