PB, the interest rate rises have begun, led by NZ, which raised rates just a tad, which did create a bit of squeaking from the indebted. Uncle Al KBE has now moved towards warning that one day rates will rise. Now it's on BBC World, Asian Business Report, as I type - discussing when, not if rates will rise.
Meanwhile, gold has tanked as the Aztecs scurry for cover while they wait to see if Uncle Al is going to send a fleet of AC-130 Spectres over their positions. Aztec totem now down to just below $400. Meanwhile, Mighty Q = $575, nearly 50% more than the Aztec bauble, G, after being behind G when the contest began a couple of years ago. As interest rates rise, debt-free productive assets will become more valuable compared with gold and the US$ will once again be seen to be more than a finger-wagging promise by Bill Clinton or fantasy WMD by King George II. Uncle Al KBE is in a different game. He's not chasing the girls or bashing the tyrants to get their oil. He's in the Big League, but he will lose to the Q eventually. It's just a matter of time.
Mqurice |
