Gold & China, again

Seeing bottom building activities in gold and China related shares.

The FED

The FED will be busy "twisting" 400 billion of short term treasuries into longer term mortgage securities. This will keep it occupied for a while. The FED will not come around to printing more money until next spring, at least.

On Fri, Sep 23, 2011 at 12:35 AM, I wrote:

The market needs to plunge & plunge in order to pressure the Fed into printing more money.

Baby Boomers

Baby Boomers to dump equities for cash.

Stock markets in down trend for next 15 years.

Re: mkt reversal

The market needs to plunge & plunge in order to pressure the Fed into printing more money.

On Mon, Sep 19, 2011 at 5:58 PM, I wrote:

market reversal downward til first week of November.

mkt reversal

market reversal downward til first week of November.

2013

OK, all the bad news has been scheduled for 2013:

In Europe, the best case is that Greece will go into 'orderly default' in 2013;

The U.S. will go from spending money to cutting spending starting 2013.

The question is, what should the market do, between now and 2013?

Obama's spending plan not sustainable

A few weeks ago, all the noise irradiating from Washington was how to cut the federal deficit. There was a great struggle that shook the world yet very little was cut.

Now the President wants to spend 400+ billion dollars to create jobs.

The US is already borrowing 40% of the money it spends. If this new spending goes through, the US could be borrowing 50%. In other words, it would spend twice as much as it earns.

Not sustainable, not sustainable at all.

Of course Obama says the new spending would be offset by 400+ billion dollars of deficit cuts elsewhere. If you believe that, re-read the first paragraph.