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.
Thursday, 18 August 2011
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.