Gold failed to break through $ 1350.00. Last week there was upward pressure but it failed to take hold through the week, as I mentioned the pressure would be maybe a week. Most likely scenario now is sideways trading and then into a trading range till reality sets in.
The stock market wants the attraction and has recieved it--for now. The job market remains in limbo and even the HEALTH CARE web site and sign ups seem the same way. I do not like seeing millions losing their insurance while just a few have signed up. It seems more signed up for Medicaid than insurance. The only thing generating the economy is QE and the private sector business. Government grows but that is dead weight on the private sector and drains it like water in a bathtub. Here lies the problem, there is only so much water there. Thats why I am pro private sector and pro small government. Thats the only way to sustain an economy and reasonably provide for the poor. The alternative is not an alternative.
Eventually the dollar will decline in value, pensions will be cut down which will be of great concern. Detroit already has huge issues. Either we go back to pro private sector or spiral down to massive government which would then feed on itself to retain power and yes their exotic pensions.
We will probably see QE last all the way through the present administrations term, hard to say after that. That means more debt with which the current policies havn`t been successfull with the private sector growth to equalize the debt levels. Big Government will lead to a drained society with more and more restrictions, not a path I would lead to myself.
One can only speculate how it will all turn out if you go by history.
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