<Bonds down, stocks down, dollar up. WTF did the $ go?>
The US $$$ trades in Monetary Heaven, on divine principles. <ggg>
If the US $$$ breaks down substantially, the global economy crashes and it is, as Samuel Beckett would say the Endgame, Checkmate. Gold then Wins.
The CB's, the monetary mechanics of the financial universe, will fight any substantial decline in the US $$$ with all their might and ammunition. It is like Custer's last financial stand for them. However, all the economic fundamentals are turning against them. The monetarists think the Angellic CB's control the economic fundamentals. But it has reached a point where Greenspan has already lost control. The other CB's of the World are beginning to distance themselves from Greenspan. Notice how the ECB has refused to cooperate and lower rates yet. Asia can't help any longer. The problem is that the rest of the World has structured their economies with the US Economy as the Titanic and their economies fail if the US economy goes into a prolonged recession or depression. At some point, as the economic fundamentals get even worse, unity within the Fallen Monetary Angels will Break.
Got Gold? |
