SOS What is the End Game

Peter Schiff says: (MyView in Red)

Foreign governments too must get out of the way and let market forces work. Their support for the U.S. dollar must end. (I do not think the foreign governments is supporting the US dollar as they themselves are in trouble (referring to Europe, China or Japan) and are incapable of doing so)If they do, U.S. consumer prices and interest rates will rise, as they must. If the Fed tries to combat the effects of a falling dollar with more QE the dollar will fall even further and consumer prices will rise even higher. (No one is able to combat the dollar, including the Fed, period) The cycle will either end with the Fed as the only buyer of all U.S. dollar denominated debt (wiping out the value of the dollar) or a Fed engineered rate hike that brings the cycle to an end. Both scenarios are catastrophic, but the latter at least offers the possibility of redemption. (Unfortunately, Fed is unable to do both effectively. Fed is merely reacting to the trend set by the market (following herd mentality). When the bad debt eventually evaporate, trillions will be wipe out from the financial markets, and most investment assets will deflate, including properties, share prices, commodities, precious metals at different time frame)

The same experts who did not see the 2008 financial crisis coming also fail to see the world in these stark terms. And while it gives me no pleasure to forecast the demise of the U.S. economy, I hope that at least the reputations of these "experts" will sink with it. (Yes, many have seen the crisis in 2008, but the reasons are different)

MyView

One expert one opinion, thousand experts thousand of opinions. 90% always got it wrong. Opinion is Free, just like my view, so, no responsibility and accountability, although with a sincere heart to prevent wealth to be destroyed by irresponsible governments.

Hence, my view is that stock market in USA will drop 75% from its high of 14,000 to 3,500 within the next 5 years, 2016 (plus minus 10%). In between, there will be volitale and sharp correction as if the market has recovered (just like this one from March 2009 to May 2011).

Commodities will drop substantially, i.e. more than 40% from it recent peak (last one year).

US dollar will equite to Euro, one to one. Now is Euro 1 = USD1.43, i.e. US dollar will appreciate at least 30%.

Housing in USA will continue to drop at least 20%.

Derivatives will cause another financial Tsunami within the next 2 years.