GATA advertisement on Wall Street Journal on 31 Jan 2008.
many months ago, in another public forum, I posted that FED would cut to 1.5%, now this is becoming a reality.
However the point of no return is 3%, if FED cuts below 3%, then its ability to influence the ecomomy would be gone. B'cos inflation is now hovering close to 3%.
Essentially, it does not make sense for Americans to save, might as well spend it. It would spur greater American consumption, while Asia is trying to kindle its own consumption.
US would spend itself dry within a decade. What would happen is more falling bridges, floods, electricity undersupply, cutback in Medicare, Medicaid. Already it could only afford a meagre 150billion rescue package so far. If another disaster comes along, US would be spent.
Some bigshot talk about the resilence in the American economy, e.g. it sprung back from the dotcom bubble, the 911, the Katrina. Now it was 3 times lucky, how about the 4th time ? The odds are indeed against US this time round.
From a currency point of view, USD at 1.5000 is equilibrium with Euro in the long run, comparing the budgets, trade, etc.
US would emerge from this near recession, but fall into another greater crisis in 2009, a depression, not recession.
This FOMC would sound so tame that turn a Tiger into a Pussy.
I am planning to start another Naked Call letter focusing on Equities. For those interested, pls email me at dollarproaragon@hotmail.com.
Update 5:05 am ET
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some subscriber ask why am i so sure, FED would give 50bp cut, not 25bp, not 75bp.
Last FOMC, there gave 75bp cut, which is the magic number "3", fibonacci number.
now if they give another 50bp, it would be "5" cut, another fibonacci number.
Then Fed fund rate would be at 3%, another fibonacci number.
That is how we use Fibonacci number to trade. got it ?
You can see I posted GATA advertisement that is to be published on 31 Jan 2008 Wall Street Journal.
Essentially individuals under the Freedom of Information Act is asking to Treasury Department to come clean with what is happening to America's Gold reserve.
The concern is that the Gold reserve has been used in swaps or options to suppress the Gold prices.
Last time, on the day Gold fell from 916 to 850, I wrote about Scooby Doo investigating the Gold Monster which appeared at Fort Knox, the place when the government keeps the Gold Reserve.
Now, American public want to know about its Gold.
Have the Gold been pilferred away ? What do US has ? Has the administration been selling Gold to support the Iraq War ? or selling Gold to prop up the Stock Market ? or selling Gold to support the rate cut ?
The American need to know
Now the vote:
If you think the government had squaddered away American Gold, pls click on the links.
Thankyou,
Update 8:33 am ET
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http://articles.moneycentral.msn.com/Insurance/InsureYourHome/BrokeHomeownersTurnToArson.aspx
a MSN article on foreclosure homeowners turn to burning their houses.
Months ago, I wrote in the other forum that those facing foreclosure should consider burning their houses, just when the California fire was rampant.
Obviously, I am not the only one thinking about it.
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