We have a weak US dollar made stronger by hyper-holding by not only the Bank of Japan but by all of Europe! Europe is now dropping interest rates to catch up with the US dropping rates. Both Japan and Europe need to flood the US with more ‘savings’ via ‘cheap loans’ except the US can’t soak up this money caused by our roaring trade deficit. The ONLY cure left for us today is to decrease our trade deficit by ceasing consumer buying. And this is happening, willy-nilly via rising CONSUMER interest rates and fees. The US consumer can’t tap into 2% loans. We are increasingly forced into 30% lending traps. And the decline in housing values means we can’t increase our mortgages eternally to fund our purchases of foreign imports. And this is the rock bottom problem: US consumers, hammered by lay offs, falling wages, rising health, food and energy costs, are unable to sustain the global trade system which focuses mainly on exports to the US consumer!
The $600 per American scheme hatched by our government is a frantic attempt at restarting the US consumer’s consumption of foreign goods. But this can’t work unless the commodities market is strangled. And it has been shot in the head. I can’t say how, just yet. But I suspect the Wall Street gangs are behind this Tupac Shakur-style drive-by shooting. All I can say today is, something dark and fishy is going on and the gold buyers are going to be forced into insolvency. I warned them a month ago that the people running all our banking systems are aiming to destroy the gold market and the signal was, India and China were beginning to see their gold markets’ sales turn from buying to selling off. Too much leveraged money flowed into gold markets as well as oil, etc. Now, the little buyers will be hammered by the Big Guys. Life is unfair. And these people doing this are always unfair. They get to keep all their loot no matter if markets go up or down. After all, they control all the levers of power!
