Gabe Menezes wrote: COMMENT: I am glad that you did what you said you would when gold reached, is it 1664 ? - there is a French Beer (golden) colour by that name. By proxy all Countries whose currencies are pegged to the USD will suffer - that is most of the oil producing Gulf Countries and Hong Kong. China stubbornly refuses to float its currency. ----------------------------------------------------------
Gabe Menezes, The US sold their debt to the Chinese and now want to tell the Chinese that the Chinese currency is over valued? The Chinese currency is backed by enormous reserves of the US dollar....... I grew up in Tanzania. Every time the Tanzanian govt could not balance their budget, they had to go to the US backed IMF for a loan. The IMF formula was/is simple. The bitter medicine was to cut govt expenditure, increase tax collection and devalue the currency. That medicine should work for the US too. However, the US wants to try the novel idea of increased spending, decreasing taxes and devaluing the currency of another country. The next target for gold is $1,777. Then $5,000 or $10,000. Mervyn1664Lobo Oh! BTW, a US credit agency downgraded the US credit rating yesterday. The US will now have to face the consequences of spending more than they could afford. All the consequences.
