BartBlog

November 8, 2007

US Economic Collapse Underway

Filed under: Commentary,News — alex @ 9:21 am

from breadwithcircus.com

Things look really bad for the US. Oil is now worth nearly $100.
Gold just rose to $850. The Dollar is at record lows against
most other currencies. Even the Canadian dollar has seemed
to rise, it is now worth 10% more than the greenback.
The story here is not the rise in the price of commodities or
other currencies. The value of oil and gold has not really gone
up all that much, rather, the US Dollar is being rapidly devalued.
It is time to sound the alarm. I recommend that those of you in
the market get out now. Put your money into something real,
like metals. The Dow lost 360 points today, at a time when
everything else that is priced in US Dollars is skyrocketing.
If the Dow stocks had real value to them, their prices would be
rising along with everything else priced in dollars. In order
to keep pace with the falling Dollar, the Dow should have risen
to somewhere near 20,000 points just to break even. For it
to stay in one place or lose value in light of the oil and gold
numbers only means one thing…the market crash has begun, just
as things are about to get worse. Foreign lenders who have kept
the US economy afloat are getting tired of watching their Federal
Reserve paper become more and more useless. They are not about
to watch the value of their holdings disappear altogether.
Good luck to my American friends, times are about to get harder.

China May Dump Its US Dollar Holdings

…such action could trigger a dollar crash at a time when the US
currency is already breaking down through historic support levels…
It would also cause a spike in US bond yields, hammering the US
housing market and perhaps tipping the economy into recession.
It is estimated that China holds over $900bn in a mix of US bonds.

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