Bear Market Sucker Rally
I hope everyone understands that this Wall Street rally is a Bear Market Sucker Rally. Once the little guys get bold enough to jump back in, the big guys will bail with their cash. Of course, another way to look at it is that the prices in the market are just trying to keep up with the massive inflation of our currency.
It looks like China has had enough, “China calls for new reserve currency“:
By Jamil Anderlini in Beijing
Published: March 23 2009 12:16 | Last updated: March 24 2009 00:06
China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.
In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currenciesâ€.
Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China.
“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,†said Qu Hongbin, chief China economist for HSBC.
Although Mr Zhou did not mention the US dollar, the essay gave a pointed critique of the current dollar-dominated monetary system…
Now listen for the drumbeat as other G-20 nations climb aboard. One step closer to the end for the American economy. The mixed signals that come from every direction are so inexplicable that they must be contrived. Liquidate, buy metal, and buckle up. â—„Daveâ–º
Well, here we go… doesn’t it almost feel like your clinking up to the very top of a new roller coaster and you know that there is that first, long drop that leaves your stomach behind but at the same time you can’t worry about that because you have no idea which way the twists and turns will be coming and the best possible way to lean to use the g force and not fight it the whole while thinking, I knew this was coming but I still waited in line with the rest of the pack, I just wanted to sit in front… LOL
Yeah, that’s what we need, a new currency run by the IMF?! That would solve everything, what a joke.
I’ve said it before but will utter it once more, ” I just want my money backed by gold, and to live free in a country that was founded by some brave and bright men who fought hard, sacrificed all to create the best system of Govt, while leaving each and every citizen with more freedom and liberty, clearly stating the fact that each was his own ruler, no one else more powerful than another, a country like the world in all of recorded histroy had never seen. That is all, it was a lot to ask for back then, it took alot to achieve, many sacrifices, lives lost, but it was what was promised us in grade school, it is what was sold to us in history class and with President’s holidays, 4th of July, that sort of thing. That’s all I want, what we were promised by those in authority, those who took it upon themselves to teach us. Call me stupid, but in my innocence, in my childhood, I was brought up to do good, help others when possible, listen to my elders, show them respect, help those you can who could use it and appreciate it, listen to my teachers. I am an immigrant, my family brought me here when I was 5yrs old, at first I didn’t understand why, I remember the day I told my dad, I wanted to go back to our country, I thought my dad would be proud of his young sons pariotism to our old home; Boy was I in for a thrashing. He looked at me and slowly taking his time educated me on what America is, was, and should forever be. He told me this is my homeland, this great country allowed us entry(yes, we actually followed all the rules and were lucky enough to be allowed to come here, but he was clear how this great country accepted us in, allowed us the same chances as anyone else to make it, or to do well, not only for our benefit but because it benefits all Americans when just one of us works hard and succeeds. We weren’t given any grants, no hand outs, if my dad knew about welfare it didn’t matter, we wouldn’t have taken it, the way I remember it that was for people who really needed help because they would starve without it which to me meant, they couldn’t work do to losing an arm or something, not what I now know is just lazy people taking advantage of something borne out of good intentions but it has now just become another burden.
OOPs, sorry to get on my soap box and ramble, I originally just wanted to say, I just want my money backed by gold and the govt. I was promised in school. What came out was just a bit of my internal dialogue run a muck. I always liked reading stories about the bravery of those who created and then made this a great country, thinking in my head how or what I would have done in their times, I never thought in my life that those times would happen again, that I would actually have to make the same choices they had to, and have to do it not against foriegn invaders but against my own countrymen? How could this be happening? Be brave, be honest, respect those who respect you and most of all remember what this country is made of and what you are made of… Most of all be a PATRIOT! Look it up if you need to but don’t ignore it, now is the time Patriots are needed again.
Peace,
Tribal
As much as I would love to be back on a gold standard, I admit to being intrigued by the complexities of the current fiat global market. I fear Obama has gone too far in the inflationary direction. He and Bush have put far too much potential inflation into the wrong places. It’s hard to say though. The rest of the world is using hard counterinflationary tactics against us. I think devaluation is quite desirable in our current circumstances, but we have a mountain of inflation racked up behind the dam of consumer confidence. As soon as that dam is breached, it is going to be one wild ride. On the bright side, we ill likely either end up with a return to manufacturing and a reduction in debt, or if it gets away from us, with the people losing their faith in paper. I see it as win/win in the long term with a big mess in the middle. It sure beats the slow death spiral of bloated bureaucracy we have been on for decades. I can’t help but feel sorry for those who believed in the system enough to put their life savings in it. Their grandparents should have told them that the government will never be as trustworthy as your brick of gold and a trusty shotgun.
It seems to me we could also throw up the mission accomplished banner on this one. If China is pushing for a homogenization of global currencies, then they may have finally come around to realizing that latching onto the dollar like a lamprey is having quickly diminishing returns.