The zero interest rate of the Fed is great news to the devils in Wall Street. Yes, you will see huge over-speculations again. With the replay of the devaluation of USD, there will be bubbles flying everywhere and this time, the bubbles will be huge, very huge.
Inflation and asset inflation will be inevitable. This is just a matter of time. Very soon, the world will not be able to ignore the truth that the USD that they are holding as reserve currency is nothing but paper money. Very soon, the long falling trend of USD will come back and everyone will cry against inflation.
A weak dollar should be good for US exports but this is not what the rest of the world wants to see. When we are facing a global recession that will get worse in 2009, the falling USD will be most unwelcome! But I am sure the US economy will benefit tremendously from the ever falling USD. The problem is when will foreign investors lose confidence or interest in USD. Once the level of trust falls below average, I am sure everyone will be throwing USD away.
Prepare for another nightmare! We will be hit very hard by paper money in 2009.
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