Thursday, November 12, 2009

US Stock Markets are actually crashing...

If you take the markets and price them in gold and silver the markets are actually crashing right now... the value of the US dollar losing more value than the markets are making up.

As gold and silver go up in value and the US dollar goes down and the market rises, the actual purchasing power of the US dollar is much less, your 401k's and retirement funds may look like they are gaining value but the hidden inflation on the US dollar is killing any value that it has. You will see this thru inflation with everyday items, food, housing, taxes.

The only way to rectify this problem is to take out all the leverage in the system, let the system crash to its "fair" state, this will put everything back on even ground and will properly value everything in the correct terms. Right now leverage bubble is being re-inflated by the FED printing massive amounts of ever growing worthless paper. This is why you see gold and silver keep going up in value. Gold and silver are the real money in the system they are always the true value of the economy, they are just underpriced or overpriced and eventually do their own accounting practices and revalue the market every so often. This is the process we are in now.

Eventually they will have to raise interest rates again once the dollar reaches its bottom and gold and silver are at their tops. If they keep the old ways of inflated the market with worthless USD then we should see the USD go very low and the stock market could possibly go to new highs within the next several years, gold and silver will top out as this happens right before they start to raise interest rates to get investment back into the USD.

There is a trick if a massive scare happens in the public and the world then we could have a panic selling of the USD and we could see a phenomenon happen, we could see massive spikes in silver and gold, im talking about silver going to $800 a ounce (back to its all-time highs back in 1477), this scenario I would see a new currency coming in and taking over the USD, something along the lines of the Amero, similar to what happened with the Euro.