Friday, June 05, 2009

US Dollar Collapse - Jim Rogers: I expect the major currency crisis. TNR.v, FVI.v, OK.v, SBB.v, SNU.v, SGC.v, CGH.to, CZX.v, AMM.to, HUI, XAU, GDX,

Who is responsible for all this mess?
What to do Them now, not those on the screens, we do not know and thanks God nobody asks. In Goldman Sachs they trust and let them save us all.


"We have two major scenarios out from this point:
1. Deadly decease with War to follow, when everybody is grateful just to be alive, ready to bring to the altar of "Common Good" all their Freedoms and we have a Fall of Rome for a couple of centuries. It is called fascism, we had it before - we can have it again. We do not know what to do in this case.
2. Universe will give us all a chance and Masters will not chose to spin us into the first option because of.....(you can add any positive thoughts here
)."

After Chinese warning US Dollar went in a waterfall mode, now it is time to panic and Bernanke did already, talking about "fiscal responsibility" while doing QE non stop - it is too cool even for Obama's cool. FED must be the only buyer on the Long End of the curve now. It is really scary.


After our Crash Warning US Dollar crashed, confirming Reversal and finally gave some life to the markets, General Bernanke has declared victory over capitalism and its core - value of the currency. Watch all 4 videos - you will get all information you need to know. With Deflation capitalism is dead yesterday, with flood of money this type of capitalism will be dead later. We will take one step at a time and Jim Rogers tells everything you need to know now: he is not short second time in his life after 1987 market crash - "they are printing so much money that market maybe can go to 20000 - 30000, but in worthless currency". "Wildly" bullish on commodities and China, Gold is a store of value and Silver is preferred over the Gold at this point. We will put a few very important observations:






1. Last week fireworks in Yields - Currency Crisis is already here.



2. US Dollar could hesitate a little here, but Bear market reaction rally is over.



3. Chinese are selling long term end of the curve and buying short term Treasuries - translation: they will not need to sell short term treasuries, just wait until maturity and get the "par value". Everybody knows about Chinese - nobody would like to be left before they start dumping. Rates are going up, Inflation. Debt service payments are rising, deficit is rising more. More IOU sold to cover, more supply - price is less, Yields are rising more. Closed circle, Negative real rates - store of value Gold and Silver fly.



4. It is not over, take a notice: Commercial Real estate - this year refinancing is coming, but the value of the "Real Estate" pledged now is 50% of the old one, where to get another 50%? All story is build on leverage and debt roll over, how to roll it over now - Debts are Higher then assets value? In 2012 LBO will come in, the same picture. All these potential losses are not on the banks balance sheets. Quantitative Easing or printing money here to stay...for years.

But this is still a weekend after all: have some fun like Chinese had with The Secretary - Tim Geithner:



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