If history of past manias is a guide, the Fed will fail, and
JP Morgan, Citi, Bank of America, and Wells Fargo will all
collapse before this is over. Small banks that did not really
participate in this derivative Ponzi finance will replace
them. Many small US banks did not do that!
The Bretton Woods dollar-based
global monetary system will cease to exist, the Fed will
be abolished, and US will be back on gold standard. Hard
to say where the DOW will go, either 1000 or 10,000,000.
In gold terms it will cost as much as 1/2 Oz of gold, or 400
in Late November - 2008 dollars. -g-
Note that with the current policies (save the 4 derivative
dealers, forget the cost) and the likely new
administration policies (likely continuation of current
policies, since the new treasury secretary is the current
vice president of FOMC) I tend to think we take the road of
hyperinflation, or a complete fiasco of the currency. The
DOW will go to 20K then, and much higher. This is the
worst possible road to take, which leads to a complete
destruction of the country. It is much worse than the
great depression. If unchecked, hyperinflation can ravage
a country for decades until there is only barter trade and
no economy whatsoever. I may be wrong, and derivatives
will implode despite hyperinflation efforts of the Fed. |
