NIA Says Obama's Words Driving
FORT LEE, N.J., Feb. 1 /PRNewswire/ -- The National Inflation Association today released the following article to its members:
pandora style beadsSo far in early 2010, we have been seeing a short-term bounce in the U.S. dollar, just like we predicted in our December 21st, 'Top 10 Predictions for 2010'. One catalyst for this short-term bounce has been China's actions to cut down on lending in order to counteract their $586 billion stimulus plan, which caused China's economy to overheat and their GDP to rise by the most since 2007. Another catalyst has been comments from President Obama, which include his support of a "spending freeze" and the "Volcker Rule."
The U.S. dollar was overdue for a short-term bounce from a technical standpoint, because more people had become bearish on the U.S. dollar than ever before. The catalysts we mentioned have not changed the fundamentals of the U.S. dollar. They have only provided a short-term excuse for traders to take nominal profits on assets they perceive to be riskier, like U.S. stocks and precious metals, in order to buy what they perceive to be a safe haven, U.S. dollars.
Although for the past couple of weeks, investors have been reacting exactly like in late-2008, we don't expect to see a repeat of the financial crisis of 2008 with U.S. stocks and precious metals rapidly declining at the same time. There is simply too much excess liquidity in the system for this to happen. The next financial crisis won't be a crisis of a lack of liquidity, but will be a crisis of too much liquidity.
We have long been saying that we believe the prices of U.S. stocks to be overvalued. We expect to see precious metals prices decouple from the prices of U.S. stocks in 2010. Gold and silver provide both the safe haven investors sought in late-2008 when they mistakenly bought U.S. dollars, as well as the protection from inflation investors sought in 2009 when they mistakenly bought overvalued stocks. fake rolex Inflation will become more evident to everyday Americans in the months ahead as some of those taking profits on U.S. stocks, seek to spend their U.S. dollars on consumer goods and services. When the prices of consumer goods and services begin to rapidly rise, the need to own gold and silver will become very obvious to the general population.
The current rise in the U.S. dollar and decline in U.S. stocks might actually strengthen the fundamentals of gold and silver. It is now more likely that Bernanke will continue to hold interest rates at 0% for a longer than expected period of time. Therefore, a rise in the U.S. dollar today could be setting the stage for a crash in the U.S. dollar as soon as late-2010, followed by the onset of hyperinflation.
It was just announced last week by the Congressional Budget Office that the 2010 budget deficit is expected to reach $1.35 trillion. A $1.35 trillion budget deficit assumes 2% GDP growth in 2010, which we believe is improbable. This morning it was announced by the White House that they are projecting a $1.56 trillion budget deficit this year, which accounts for a 7% increase in non-defense discretionary spending, not including costs for last year's stimulus package. With the stimulus package included, the increase in non-defense discretionary spending would equal 17%.
During his State of the Union address, Obama promised a three-year discretionary spending freeze in an effort to cut down on future deficits. However, this spending freeze won't begin until 2011 and it excludes defense, education, as well as programs like Social Security, Medicare and Medicaid, which currently make up over $60 trillion in unfunded liabilities. If Obama was se
Other articles:
http://boling880938.easyjournal.com/entry.aspx?eid=4524243
http://www.abrace1.com/Accessory-Network-to-relaunch-.html
http://www.goalhk.com/Woman-can-sell-inherited-cloth.html
http://www.yidblog.com/blog.php?user=mywatches¬e=91643
http://social.mumbaihangout.org/blog.php?user=mywatches&blogentry_id=2728