Reply #20 Tonice112322004's post
Tsk the Dow Jones index is supported by one thing , money printing , nothing more, and thus it is most definately NOT a reliable index.
The banks are making money in the US for again only one thing , loaning money to the US government , they are essentially taking the piss...
Ie the banks got into trouble , the tax payers bailed them out , now the banks are making money by loaning the US government money the government gave them in the first place.
I personally watch
Gold prices (higher = USD worth less)
Employment
and M4 (for UK) which is money supply , the M figures for the USA are starting to look dangerously like hyperinflation.
Marc Faber on TVB news in HK reckoned the US would tip into hyperinflation a few days ago, the debts are simply TOO large to pay back via cut backs and tax increases will have a negative effect.
Any recovery in China is the PRC desparately trying to get rid of its US dollars before it becomes toilet paper.
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