The DOW plunged over 800 pts before retreating its fall on another Black Monday and ended below 10,000 pts. Clearly, the evil Bailout Plan has absolutely failed!
I wonder why our American friends could allow their lawmakers to make a mockery out of their legislative and economic systems like that. The approval of the evil Bailout Plan on last Friday was just one step towards financial destruction. Why? The whole world has lost confidence in the US dollar and the US economy. The US administration will be throwing trillions of US dollars to swallow all toxic debts and dirts of Wall Street. Whatever investments in USD related assets will become paper money. It's just a matter of time.
The only reason why the US dollar is still showing a little resistance is that other major currencies are competing by devaluation as well. When these countries cool down, they will realize the problem of hyperinflation will prohibit any further devaluation. By that time, the world's financial systems will be in complete chaos. The US dollar will keep on falling while the other major currencies may be forced to peg with the US dollar in order to compete with the USD devaluation. The whole currency market will come to a halt and export/import will be badly hit. There will be accusations of currency manipulations everywhere and economic barriers and protectionism will rise very rapidly.
As there is no safe haven for sheltering money or storing/preserving economic value, we will see value depreciation day-by-day. Many people may go mad! The poor countries will be injured most. Whether we will see hyperinflation or hyper-deflation, I really don't know. But according to our experience in Hong Kong, we should see "deflation" because the public society simply didn't have enough cash to spend or buy anything. It is impossible for the housing market to rise or recover. Retail will be dead and consumption reduced to goods and services of absolute basic necessities. Worst, you will see unending rise in unemployment and falling wages everywhere. Can you imagine the fat cats in Wall Street can't afford a bar of chocolates in the supermarket?
But before such wonderful deflation comes, we will have hyperinflation first. Why? Prices of food, commodities and other goods and services won't up down when the major currencies depreciate. This is what is happening in Hong Kong now. Despite the fact that we are in a global recession or slowdown, prices in Hong Kong are still going up. You know our taxi fares have just been increased by more than 10%! It will take a considerable amount of time before the prices in the market are forced to come down. It's only when you see lots of close-downs of shops, restaurants, cinemas, cafes, department stores and even supermarkets, then prices may start to fall dramatically and deflation will come. This is what we experienced after the financial crisis in 1997-98!
Don't be afraid. The worst is yet to come and I am telling you this again and again so that you will be prepared. The fear is that this time the disaster is a global one and most devastating of all, the devils in Wall Street will be in absolute control politically and economically. Those devils and their friends will be ruling the world for a while before there will be worldwide revolts against them. Rebellions, revolts or revolutions, whatever term you use, means there will be violent struggles between the rich and the poor! Yes, we will move from financial chaos to wider chaos in our world and ultimately we will have wars, famines, natural disasters, widespread diseases, etc., all leading to the destruction of human civilisation.
If God can save us, perhaps he would. But if you study History, only we can save ourselves now! Go and stop the evil Bailout Plan now!
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment