SOS Currency in Danger!

By Graham Summers

Quite a few people wrote in last week telling me I was insane for even claiming that the US Dollar could rally. But in reality, this is the outcome Americans should all be praying for given the alternatives:

a Dollar rally would only damage stocks and commodities,

whereas a Currency Crisis would effectively destroy the economy and a Country crisis… well, that one is obvious.

Stocks, generally get all the attention from the media, but in reality they are relatively small fries compared to the Bond and Currency markets. As of 2008, the world stock market was roughly $36 trillion in size.

In contrast, bonds were $67 trillion and

forex (currency) which TURNS OVER $3.2 trillion PER DAY: ten times the daily volume of EVERY stock market in the world.

What the facts says...............

Does This Look Like A Healthy Economy To You?
Industrial capacity at an all time low: In May ’09 industrial capacity was 68% -- roughly 1/3 of our plants are doing nothing at all.
Falling revenue and profits: Even after laying off people and cutting costs, Q-over-Q Corporate Revenues and Profits fell 17% and 33% in 2Q09.
Food stamps in America? There are more than 30 million Americans on food stamps.
A creeping socialist tide: A full 18% of incomes are coming from an already broke government.
Unemployment desperation: No less than 7 million people will run out of unemployment insurance by Christmas (add their families and you have 13 million folks becoming destitute).
Plunging state coffers: Tax receipts are at their lowest levels since 1932.
Bankrupt governments: As many as 32 states have budget crises ($121 billion in total deficits) and the Federal Government has a $2 trillion deficit.
Derailed transportation: Rail carload volume for 1H09 is down 19% from the already dropping level of 1H08.

Is 2009 a repetitive of 1930?

Key Factor (1930 vs 2009)
-1930's
-Right Now 2009 Nov
Initial Collapse
-49%
-52%
Length of theSubsequent Rally
155 days
150 days+
Gain of the Subsequent Rally
+50%
+50%
Final Collapse
-70%
Coming Soon

MyView

I was once told, you think you know so much about the world economy, what for, can you make money from that! Money has become the main measurement of a person success. How much can an intellectual intelligence worth if it doesn't help the person to make money. So, if money is used as a measurement of person success, then, I conceed, only 5% of the world population is rich, therefore successful. Wouldn't this implies that the other 95% not successful, because there are not rich, in monetary terms.

Some even says, how much does a morality worth? We have even come to a stage to value morality with money. So sad.

Don't read just because you want to make money, read because it interest you, read because you want to enjoy the writer's intellectual mind and flare of writings, read because you want to explore outside your domain of understanding the world, read because it keeps your mind wander, read because it unearth the mysteries, read because you want to satisfied your curiousity.

Reading about world economy helps one to understand the world better, not necessarily to gain from it materially. If that is the case, it would be such a sad case for education. Gaining and losing in investments is just a game, don't let it goes into your head that if you make a lot of money, you can assume yourself are intellectually better than others.