2007-10-11

Everything is interconnected

Just posted this in one blog, may be I will write a long article for it, but it will be in Bulgarian:
Everything is interconnected

US inflating currency to get higher stockmarket, because president vote coming soon.

Chinese inflating, because they want to export in USA, so their stockmarket go up.

Japanese, instead of simple inflation, keep rate low - 0.50%, because they want to export too in both USA and EU.

Funds borrowing money from the Japanese, and investing in USA, Australia and New Zeland (carry trade). This makes US and other stockmarket to rise even more.

EU has no choice, but to inflate too. Why? Because there are no way for EU to export anywhere, because EU products get too expensive.

And where gold fitting?
Actually nowhere.
If there is a country with gold standard, their currency will raise and raise, and they will only import, but not export. This is bad for the country in general.

Conclusion for regular people like you and me is - inflation comming.
GOT GOLD ?

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