Panic Panic Panic, right? the world is coming to an end, financial collapse, Europe crumbling!! Sell everything!! Wait just a second, that is a knee jerk reaction, but is that what is really going on here?
Well, no, this is the begining of assest correction in the USA Markets, based on our US dollar and The EuroDollar.. Take note today the currency trading, how the dollar rallied while the EU fell hard.. This is correct devaluation of The Euro. Since the Euro Union does not want to devalue it themselves with capital liquidity for the weakest link in their union, the open market is doing it for them… This results in The USD rallying, not because our dollar is fundamentally so strong, but because the EU is fundamentally getting weaker.. Gold and Silver have been valuated on The USD, which until very recently, has been taking a beating from the flood of liquidity causing a large capital reserve in the USA banking system that was depleted in large part from the 2008 near depression and housing market bubble. What we are seeing here is not a stock market with poor fundamentals, but deflation of assests based on inflation of our dollar, and the deflation of The Euro…. Next in line will be China, as they will be forced to inflate their currency in order to get control of their ever growing inflation in their economy…. All of this is a healthy correction of global markets.. For the EU zone, when Germany and France (and a few others) get their heads out of their asses, they will see their currency is only as strong as their weakest links in their Euro Union.. Then, all 17 member countries will agree to capitalization, “bail outs” so to speak, of their weakest members… I see this happening sooner than later. Greece has already begun the proper restructuring, and because of this devaulation of their currency, I see Italy,Spain, and Portugal also coming into line.. Since many people there refuse to accept cuts in entitlements, they will raise taxes accross the board and cut government sector jobs.
The EU for far too long, has been living far too high on the hog, enjoying far too much entitlements without proper revenue stream production, both in the private sector and government sector,, much like we were from 1993-1999-2003 -2007..
It is hard to say now what the valuation of all vested assests are at this very moment, but the markets will decide that in a due course.. In other words, this is about Global economic correction, NOT A GLOBAL CRASH AND DISASTER!!
So, should you short the markets, buy Gold, Silver? NO!! the proper move is to buy stocks lightly on the way down, and average in a cost basis SLOWLY! after the Eudollar corrects into a proper valuation, The Fed here in The USA will be doing a very large assest purchase accross the board, beyond “QE” in order to then bring the dollar back down, and try to equal out the main world currency values. a future REAL STRONGER DOLLAR has to be based on fundamentals which are production exports, a much lower jobless rate, repatriotzation of the USA Job Market, common sense taxes and spending, and a streamlined Government with common sense less red tape regulation.. Obama is not setting the right tone currently, he needs a much better speech writer!! Hinting at the same old tired idealogy of class warfare is an age old failed NeoLiberal mantra… Setting a tone of cooperation and Americans as one is the right tone!! Also, the right thing to do is a flat tax accross the board.. This closes all loopholes and simplifies who pays what.. The so called “Rich” then cannot manipulate the system so easily, and the so called “poor” can be capitalized up into the tax system properly. In other words, what Obama proposes, and even the GOP, is mainly more of the same smoke and mirrors tired rhetoric and failed policies of the past..
Washington needs to stop playing politics and understand we are in a critical time in history right now.. If they do, or we decide to vote people in that do, then there is hope not only for our generation, but the next generation to follow!! We as a people need to learn to be more honest, caring, and empathetic of all people! We and our Politicians, as well, need to change and STEAL LESS and cut down on the cronyism. (I don’t think we can ever fully expect everyone to be honest, I would just take less stealing/cronyism as a lesser evil) I do not really have to lay out the inverse expected results if we fail to change, do I?
Your comments are welcome below… Scott
