I hope everyone understands that this Wall Street rally is a Bear Market Sucker Rally. Once the little guys get bold enough to jump back in, the big guys will bail with their cash. Of course, another way to look at it is that the prices in the market are just trying to keep up with the massive inflation of our currency.
It looks like China has had enough, “China calls for new reserve currency“:
By Jamil Anderlini in Beijing
Published: March 23 2009 12:16 | Last updated: March 24 2009 00:06
China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.
In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.
Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China.
“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC.
Although Mr Zhou did not mention the US dollar, the essay gave a pointed critique of the current dollar-dominated monetary system…
Now listen for the drumbeat as other G-20 nations climb aboard. One step closer to the end for the American economy. The mixed signals that come from every direction are so inexplicable that they must be contrived. Liquidate, buy metal, and buckle up. ◄Dave►