Wednesday, August 3, 2011

Dagong downgrades US debt to single A.

The FED does not want to accept Dagong Global Credit Rating Company, but the question is whether the Chinese govt will accept the rec and demand higher return on Treasuries. Nobody else but China has the resources to buy even part of the $2.5T worth of Treasuries the Obama regime has to sell to finance the new debt. Meanwhile gold has soared to $1,072 in early trading.

As the Euro is slowly falling apart, gold prices go down some at night, when the European markets are open and then recover when the US market opens. If the US has to print money to finance the overspending, a 20-49% inflation is to follow, say forecasters. Obama's plan to destroy Capitalism is succeeding.

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