Gold will probably collapse, with the currencies. It's counterintuitive but stranger things have happened.
Already in DA GOLD.....no thanks on playing the GBP (already have enough going on with other trades....LOL). "Have PHYSICAL, will travel!"
At this stage I think I'll join Jim Rogers and target the GBP/USD low of 1.0520. I'll keep an eye on the trade and see how that goes
I think GBP is getting ready to run out of steam to the downside. I'm not much of a bottom caller...but...over the next few weeks I am thinking it should should stall or turn around.
I agree that the GBP has fallen by a lot in a short period of time .... roughly 10% in the last week. However I think this merely reflects the fundamentals. At least one article: http://www.telegraph.co.uk/news/new...ay-need-IMF-bail-out-warns-David-Cameron.html discusses the potential need for an IMF bailout
Fighting trends has been a bad play in any space lately. The trend on the GPB is still to the downside, no matter how much it has been already been cut down to side. No one trying to catch a falling knife has won the game in a long, long time, whether oil, metals, equities, whatever...
Too bad there is $1,400 Trillion of wealth left to evaporate and will probably only be about $200 Trillion at current values left when all is said and done. The deflationary credit contraction begins http://elitetrader.com/vb/showthread.php?s=&threadid=149998
Goldman Sachs: 0% Interest rate is too high January 19, 2009-: Can an interest rate of zero be too high? Unfortunately, yes. A new analysis by Goldman Sachs (GS) concludes that the Federal Reserve's cut in the federal funds rate to a record low of zero to 0.25% on Dec. 16 isn't going to be nearly enough to get the economy going again. The report says the Fed would need to reduce the federal funds rate to negative 6% by the end of 2010 to supply the needed amount of monetary stimulus. The problem: It's literally impossible to cut interest rates below zero. As a result, "we are entering a world with interest rates that are far too high for the economy's good," Goldman Chief U.S. Economist Jan Hatzius wrote in a Jan. 16 research note. More ..... http://elitetrader.com/vb/showthread.php?s=&threadid=151488
you cant keep up an economy with paper ( = USD).... dreAM ON you have to work again and build real values
I was watching a TV program about Dinosaurs. The situation was just before the extinction of dinosaurs. A massive Volcano was fuming in the background and Giant birds were flying. Suddenly there were many minor explosions all over the place & poisonous gas & steam started felling the giant birds. Then a statement appeared "Giant Birds falling from the sky are indicators of approaching massive catastrophe". After sometime the "massive volcano" erupted and all the dinosaurs on land and sky were killed/extinct. Now the "falling giant banks & giant companies" = "falling giant birds" and they indicators of approaching massive financial catastrophe which is $1200 Trillion loss to the world economy.