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Friday, July 29, 2011

Case for Gold , Silver and Mattress

Today's winner : Cash in King Size  Mattress

The Current Debt Ceiling Crisis can be traced all the way back to Bush and his Goldman Sachs Buddy Henry Paulson.  Well how about Alan Greenspan for a Change..The U.S Fiscal and Monetary policy stroked by Alan Greenspan to curtail Inflation and infuse Liquidity into the ailing U.S banking systems has created a mountain of U.S Debt circling around the World in Record numbers.   In Fact the Current European Financial Meltdown is caused by uncontrolled issuance of U.S Debt in exchange for increased Liquidity  and Borrowing levels in Western Bloc.
         The Result of Loose U.S Monitory policy and availability of Cheap borrowing cost for Financial Firms have resulted in Tremendous amount of U.S Debt within the World Financial System . The Result is

1,   Explosive prices in World Commodity - (futures Traded in Dollar)

2,  Increased Inflation in Developing Countries including China - (China holds 2Trillion in U.S Debt).

3,  Weak Euro resulting in panic buying of Dollar based commodity.

4,   Hoarding of Food , Oil and Commodity by BRIC nations due to Volatile Commodity Futures Markets.

Come Aug 2nd or August 11th (real date) ,  the World will be Staring at two diverse crisis points

1,  U.S Government passing a Bill to Curtail  2 Trillion in Deficit  - Gold, Silver and Oild Spiking 10 to 20% from here.

2,  U.S Governement Passing a Bold Measure to cut 4 Trillion in Deficit - Cuts Commodity demand in Major markets and full stop to all Development activities in the world's largest Consumer market .

Either Way China will start offloading the U.S Debt which in turn will raise the Treasury yield's exponentially provoking a massive exit from U.S financial market into Commodity again..


In Either  way the charts Suggest that Gold is headed to 2000$ and Silver to $55 an ounce. Oil could spike to  110$ when U.S dollar drops to lows...

by far the Best option is buying a king Size mattress and hiding all the cash (make sure you use a Good Bug spray ..)..


Good Luck investing

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