Hi,Just about to leave to start cabbying, but wanted to attempt...

Hi,

Just about to leave to start cabbying, but wanted to attempt to start a decent thread.

I don't have time now to do the figures properly, and so will just run them from memory.

Consider this:-

* USA is borrowing 500 billion $/year from overseas countries savings.

* USA government debt in this regard now totals over 7 trillion dollars.

* Gov debt = gov bonds.

* The majority of this debt is held by China and Japan ( let's say they hold 3 trillion of it at the moment/tonight!)

* As i type, the US$ index is down .72 to 87.57 - that's down 0.8% tonight.

* That means China/Japan have just lost US$ 24 billion so far ...... tonight ....alone!

* If they decide they can't afford to lose money like this, what will they do with their huge holdings of US$?

I think China will use them to buy resource producers/reserves, particularly from America (already started with Canadian company), and buy gold.

I think Japan will buy gold.

BWDIK - and so I seek your guidance.

TIA.

bye.dub
(ps. I have my boat!)