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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (5241)	6/5/2010 1:20:49 PM
From: carranza2	1 Recommendation Read Replies (1) \| Respond to of 219176

As I think things will happen, all currrencies will be under substantial pressure within a couple of years, perhaps sooner. Of course, some more more than others, e.g., the euro. The underlying nations or zones suffer from the same malady: enormous amount of debt, dicey demographics, huge deficits, etc. The USD is the current favorite as a flight to safety, but this, along with its status as the reserve currency, are the only reasons for its current lofty status. Without them, the USD would be substantially lower. Our public and private debt levels, unfunded public liabilities, employment, pension fund status, public finance, employment prospects, deficits, increase in money supply, etc., simply do not support its current status. Unfortunately, markets eventually recognize everything. Once the euro and the UK pound are given a thorough flattening, the structural problems with the US economy and public finances will become even more apparent. This is in my estimation inevitable. So what happens? IMO, a further flight to safety as other nations face currency crisis after currency crisis. This will should benefit both gold and the USD initially much in the way we are seeing now. Eventually, however, the underlying basis for flight to the USD will be questioned and gold may at that point enter a mania stage. It will be the last man standing. Even if this does not happen exactly as I see it, i.e., the USD does not suffer as much as I think it will, gold should do extremely well.