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CRISIS ALERT - for March 2010
Increased probability of market disruptions in currency and bond markets
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This crisis alert is a new service offered by Berninger.de, one of the most succesfull crisis prediction and trend forecasting blogs.
New signs of significant market disruptions are unveiled and most likely we will be able to observe the full effects in March 2010. There are three signs undoubtly showing a trend to a new economic reality:
- George Soros now started to announce larger investments in Gold, a definite sign that the time of stable currencies will come to an end.
- We further see China now fighting the US expansionary money policy by throwing large chunks of bonds onto the market. China basically throws a currency granate, after it divested already its corporate bond holdings. This is the sign for which many investors were waiting. The ignition of the Dollar collapse.
- Looking at the faces of polictical leaders, we can realize that they are under extreme stress. President Obama's and President Zapateros faces reveal the truth about the state of the economy. During their latest media apperances they appeared old, exhausted and unsteady.
The world needs to be prepared for the worst adjustment to reality, within the coming months! At this moment of time we see an increased probability for a sever market disruption, which could result in an adjustment of currencies purchasing power. (Probability still below 50 percent, but significant enough in order to establish contingency plans)
If this process (reality) will be allowed for to occure, then we will most likely have rapid currency and bond markets adjustments and interruptions. The SEC and other regulators might find themselves in a situation where they need to prohibit redemptions from funds. Central banks then will have to counteract and start with exiting a non-sustainable deflationary easy monetary policy. This will kick-start the inflation by freeing up the potential energy which had been accumulated by the QE policies. Unemployment numbers will climb further and banks will come under pressure.
This crisis alert will be updated on a regular basis.
tags:Crisis Alert, Obama, Zapatero, Dollar Collapse, China, Treasuries, investing, currency markets, George Soros, Gold, Dollar, Euro, Spain, Greece.,
Posted in: News
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My concern is that the Soros move is a position play in an effort to profit from a bubble he is about to burst.
Soros can take leveraged short positions at a fraction of the cost and dump the GLD etf causing the hedge funds to follow suit. He makes a ton.
The 10Q disclosure was related to paper gold to my knowledge, not physical delivery.
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Joern's answer:
Yes, I do not expect Soros to play by the rules. But the fact that Gold will go up in short term causes further imbalances. Coming deleveraging will then take its toll, before markets might be suspended.