My private opinion is that the dollar is going to fall and the gold is going to rise sharply. This is my private opinion as a professor of international political economy. Why? China is preparing for something very big in currency markets this October. We then learned that economic models from two very well known financial forecasters are predicting that governments around the world will run into serious problems starting around October 2nd of this year. Those forecasts come on the heels of a warning issued by economic analyst Michael Snyder who says that a financial collapse is imminent within the next six months.
A wide body of evidence suggests that something is in the works as economic numbers around the world are revealed to be nothing short of pure conjecture. Yet, despite the clearly disastrous direction in which the world is trending, politicians and media pundits maintain that whatever contagion existed has now been contained.
But a shocking report from Zero Hedge suggests otherwise. According to one of the world’s leading financial web sites, major banking institutions like JP Morgan Chase and Goldman Sachs have been left speechless after the release of new data coming out of China. The news isn’t necessarily that China just reported a massive increase in its gold holdings of some 600 tons, but rather, that they have actively dumped hundreds of billions of dollars worth of U.S. Treasuries over the last 15 months, with some $224 billion having been offloaded in just the last 90 days. Good luck with your trading, John