Lets face it the US economy has tanked and the QE programme did nothing but create so much liquidity but the American people did not benifit. The American people have had lower wages, those that are employed are much more likely to be employed on a casual basis on or very near the minimum wage level.
50million on welfare and food stamps.
GOLD
Who knows who is behind Gold being constantly smashed, it could be the Chinese or it could be the usual suspects protecting the US Dollar still.
QE
The last 3 QE's have caused big rises in the US equity markets so it stands the test of common sense to think the US Equity markets will have big falls without QE, unless there is some miracle jump in the US economic figures overnight.
Housing
There are hundreds of thousands of properties still on the Banks books that are foreclosed properties.
A lot of big property companies have sprung up in the US buying a lot of properties from the banks and are still trying to flog them off. I get at least one call from the US every week which I don't answer. My friends get something similar. The latest rise in the US dollar will curb overseas demand for US properties.
OIL
The Saudi's and the US have done a big oil deal to sell boat loads of oil very cheap to China in an attempt to bankrupt Russia and the old divide and conquer tactic. Whether it works or not is the question and it could actually cause Russia to sell oil to China very cheaply, so the financial fight goes on. This by the way is why the US is still in the ME. It wants to smash Syria and is still supporting the Syrian terrorists, if they get control of Syria then they get the oil and the whole ME.
CHINA/AUSTRALIA
If Australia doesn't start treating China like a major trading partner and stop pushing the US plan then we could find ourselves in a very poor country. There are other Coal and IO mines around the world and with this latest snub from Abbott re not joining in an Asian investment bank well Abbott is setting us up for big problems with China. Without China Australia is pretty much screwed because this government like the previous couple of governments have not invested nearly enough in research or manufacturing. We could be a smart economy by now but instead we rely completely on China and digging up our natural resources.
Now the Australian government is cutting funding to research and development organisations like CSIRO and claiming that industry will fund the R&D. Australia is going to tank when CHINA stops buying all our IO and Coal, get ready for it.
