Currency Crisis

I have recently consumed myself in every bit of news and listened to Peter Schiff, Ron Paul and many others as well as people with different views on the current situation in the US economy. The desperate attempt by people like ben bernanke to artificially stimulate the US economy is just making matters worse, as his solution is to print more money and to give it to the banks and businesses such as Freddy and Fannie, which now have 100% of their loses covered by the government. The government is getting bigger and bigger, intervening with the free markets. The housing crash was brought about by too much easy credit, you only needed to put down about 5% to get a house, and people believed housing prices would just continue to rise I mean how dumb is that. After the crash what then would have happened would be that lenders would tighten up on lending and be more cautious to lend to people who were too likely to default. But the government stepped in and said we will guarantee the loans so then people started to lend, the interest rates were also set to 0%, encouraging no one to save and again encouraging people to take risks they wouldn't have had the government stayed out of the free markets. The government encouraged more spending, more debt in many ways.

The country is massively in debt and they desperately need to let companies that are failing to be productive fail, let resources be bought up and let new companies start up, which aren't owned by the government and aren't a drain on tax money. They need to allocate resources to allowing the country to be productive again. The only reason this has been able to go on as long as it has is because the US dollar is the reserve currency. If you look at England, who is closely linked with US, our debt is a bigger percentage of our GDP and I am sure it would be less if our currency was the reserve currency. With the US, their currency used to be backed by gold so they convinced people to trade with dollars because it was good as gold, and gold is real money, but since they moved of the gold standard it no longer applies, it allowed the government to borrow and spend and now the world is realizing. It is inevitable that the dollar will eventually become worthless, it has always happened in history, it cannot hold its value forever. The problem is the dollar isn't backed by anything only faith and the world is losing faith. They have good reason to because the US is based on borrowing money from china to buy more stuff, and china are just giving the US money because they would lose even more if they didn't. China are slowly trying to move away from the dollar and have said they are buying gold on dips only because they don't want to push the price up. Really its a lose lose situation whatever china do, but its only a matter of time until they stop lending the US money. I believe soon a currency crisis will hit the reverse currency and seize to exist.

I am still in Mwana Africa, but only just, it has slipped to 12.5p but apparently it seems to have strong resistance slightly above 12p. A strong buy imo and I am in for £600 now but if it slips 1p I would be out.

Merrwaarrna

Well Mwana Africa has slipped a little so far, I topped up to £400/p. Also I have made £650 currently on betting gold would go up since friday. I placed the bet straight after the 4% drop after the news of dubai. Pretty surprised Mwana Africa hasn't made gains considering the price of gold. I read some more articles on gold and still expanding my knowledge, all very interesting.

Im predicting good things for mwana africa today, currently 0% change. Also Mwana Africa release how much gold they have mined in novemeber on the 10th december.

ya, this is now my stock market journey blog :)

No poker played since I last posted about it