1. The USD will immediately fall heavily 2. Gold will immediately shoot past $500 IMHO
3. The FED will immediately drop interest rates and print dollars for use by Stock market margin and derivatives traders who made losses. Re the latter, the damage could be heavy.
The increase in the supply of dollars, the deficits and general nervousness will keep the USD down.
The flow-on effects will concern most countries but particularly those who haven't done very good house keeping. _______________________________
As you know, there is a table with negatives for the USD and positives for gold.
The new one will now read:
THE OBJECTS OF A US DOLLAR DEVALUATION WON'T BE ACHIEVED BY PEGGING TO THE DOLLAR AND COMPETITIVE DEVALUATIONS.
THE DEFICITS ARE INCREASING. ABOUT $US2.2 BILL/DAY TO PAY FOR THE INTEREST. WHO WILL FUND THIS?
INFLATION IS INCREASING. AND SO ARE INTEREST RATES.
A MARKET CRASH WOULD IMMEDIATELY RESULT IN A MUCH LOWER USD AND MUCH HIGHER GOLD PRICES IMHO. (Lowering interest rates. drastic increase in money supply while the deficit problems remain).
THE PRICE OF OIL AND SECURITY OF SUPPLY ARE IMPORTANT ISSUES.
BIN LADEN AND OTHER TERRORIST GROUPS WILL ALWAYS BE THERE. AND SO IS THE IRANIAN CONNECTION.
Gerry Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.
