Thursday, 18 August 2011

What now?

Above you will see an update of a chart posted before (see blog 21 September 2010). It is a semi-logarithmic chart of the Dow priced in Gold, since 1921. Support is coming at 5 (Dow 10.000 / Gold 2.000 ?) This has been the minimum objective commensurate with the 1932-1935 basing in the stock-market. Its possible that in this Global Government Debt crisis the ratio falls even lower.
Politicians still do not appreciate the size of the problem. Markel and Sarkozy appear naive and Congress's teenage posturing lamentable.There are many years of debt-delevaraging ahead and the continual issuence of debt simply enslaves our children's generation to pay interest to emerging Asia.

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