Today I woke up to the news that the Dow Jones Index dropped 512 points and I am asking what the hell is going on. Gold is at 1661 per oz and the Dollar is at an all time low. Three Eu countries have received bailouts and now there is talk of Italy and Spain defaulting. The papers are pointing out the drop in the Dow was based on the Italy and Spain may having to face the fact they need bailouts. But we also make the point about Washington and how they had too much "jaw jaw". In my view Gold is near to its fair value. I had back in 2008 predicted that it would hit about 1700. It seemed to get there faster thanks to the politicians in Washington and the wars which are creating debt in America and turmoil in the world.
Even after yesterdays dip in the Dow Jones the Asian Markets are following the same pattern. In my view it is the start of the chain reaction for a double dip recession. That is nonsense we are on the way for a depression. This reminds me so much of the Weimer and the Stock Market crash when prices were too high in shares and they just crashed due to a so called " price adjustment" Germany printed more money which created hyper inflation and gold was more valuable as a payment source for war reparations. Doesn't it sound all too similar to what is happening now?
No comments:
Post a Comment