[quote=Adebisi]The dollar index is right around 75 at the moment. Mark my words, it’s going to 60. That means gold will go to 1450 just on dollar devaluation alone. Add in the increased demand for gold and we’ll see $2K gold soon enough.
And if China de-pegs? To the moon, baby![/quote]
I’m calling bubble on precious metals. Time will tell though. I think what we’re seeing in Dubai is just a window into a global financial problem of extreme speculation. I have a feeling once these investments go sour, it’s going to spill into asia, and we’re going to see a lot a lot of interesting things in terms of the stability of emerging economies.. I would not be surprised that countries in asian heavily leveraged in investing in Dubai, and it will spill over.
The the dollar isn’t going to look as bad as folks think it is, in the short term…
I can’t fathom in the short/mid term that China could be a world reserve currency. You think things aren’t heavily leveraged there? Time will tell, though. And, yes oil is going down.
China won’t de-peg until
(1) It can find a replacement the consuming consumerism of americans
(2) The world has accepted it as a reserve currency
Depegging = going for the kill in terms of the the US versus China. The moment that happens, they don’t have this “cheap labor/cost” advantage no more. So plan B must already exist before that happens to sustain the growth.
