Loading ...Buy gold, or your precious rare metal of choice! It is crystal clear for those of us at Alphas Edge that commodities will be the next boom. Sure, little time remain left for the government of the United States and countries around the world to take the corrective action to prevent this disaster from happening. The problem however is that they are purposely causing it and preventing it is the last thing they want to do.
If you paid attention to the pre meeting of the G-20, the global economic decisions that will be made the next year is inflate, deregulate and stimulate. The USA and UK are pushing all countries to keep the stimulus party going. Not only are they encouraging massive government spending but also requesting that rates remain low. Considering that the world has zero interest in going after the criminals who created our financial mess like Angelo Mozilo of Countrywide and Hank Paulson of Goldman Sachs, it is obvious that they intend to bury the real cause of the economic meltdown (fraud, corruption and executive incompetence) and inflate our way out.
As Germany, France and Japan put their recessions behind and are now in positive GDP, low rate and stimulus will only cause asset inflation and hurt their economic stability. Countries like China are now growing over 8% per year! Really, do they sound like they need a stimulus? Other emerging countries like Brazil and India could be close to exploding in growth like China.
Sure, the US is in for a Japan like lost decade. The dollar is at critically low value when compared to the basket of global currencies. Hopefully, our government will get their act together and prevent the commodity desastor that will shift millions of middle class Americans to poor debt slaves.
This content is restricted to site members. If you are an existing user, please login. New users may register below.