You're the expert on these matters,
Quite correct, but even I can't predict how stupid people can get. That's unbounded. I do know what's correct. It's obvious. It's what people have naturally done over thousands of years.
you have the conduits in place to estimate with reasonable certainty
I have no conduits. I get the same news you do. I have a unique background though, one that let's me call a spade, a spade.
until more information comes in, i have no expectations for anything, but more of the same.
Here's some info. The Chinese, the most efficient capitalist nation of earth, is and has been raising interest rates. Their discount now stands at 13.5%. The ECB wants to raise rates but they're mired in a forced bailout due to the overt socialist predisposition of their respective states. Compare:
ECB pumps in extra 170 bln euros - FT
FT reports Emergency help for financial mkts has entered new territory with the European Central Bank pumping-in almost 170 bln euros extra liquidity at below mkt interest rates in a special operation to head off a year-end liquidity crisis. The surprise move, which followed last week's co-ordinated barrage of measures by the world's central banks to increase market liquidity, suggested the ECB was still frustrated at the failure to ease financial mkt tensions. Late on Monday, the ECB announced that it would offer unlimited funds on a two-week basis at an interest rate of 4.21% -- significantly below the market rate before its statement. On Tuesday, it confirmed some 348.6 bln euros - the largest ever for an ECB money market - had been allotted, compared with the 180.5 bln euros it had estimated would be needed in normal circumstances.
You hear a lot about supply and demand for the dollar determining its conversion vis-a-vis euro. This item should send the dollar up(and therefore, gold down) ceteris paribus. Outside of that questionable S/D explained effect you do have the reality that these quantities of money have inflation written in them. If the EU inflates faster than the US, the dollar will rise. The US will be forced to raise rates by China's action regardless if they choose to make a bonehead move in the opposite direction following the airheads at the ECB. The thing is, raising rates is what's needed. The Chinese know that. Problem is, the US has a lot of liars, cheaters and deceivers to protect.
Now tell me, considering the nature of those types, who do you think they want in office? 'crats or pubs? |
