Saturday, June 25, 2011

US : QEiii : its time to bite the bullet !

Snapshot Summary :
---------------------------
. Something has to give.
. People & country has spend years in advance.
. Cannot continue to spend.
. This seems to be the turning point.

. Businesses has to be given incentive to stimulate the consumers
. Interest free loans
. Reduce prices, etc....
. Everybody still loves a bargain.
. The secondary market
. Businesses has to build up its reserves, it needs new markets.
. US needs to open up, allow for foreign investors, privatize
. As it's parochial local businesses goes overseas.

. US$ supply reduces from the market.
. US$ Demand stays the same
. US$ will appreciate not that it's strong.
. But lesser of it is going around.
. But because of its inherent weakness, at best, US$ will bottomed out here
. Hover around this level.

. As for Gold, if US$ is stabilized, there is no need for Gold as a hedge.
. Silver will be down as well.

http://www.businessday.co.za/articles/Content.aspx?id=146711

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