Forex Howto

17 Nov, 2008

China wants Gold, China doesn’t want USD

Posted by: Milton In: Misc

An interesting article about china showing signs of massively increasing their gold reserves. I’m taking this as another good sign for shorting the dollar soonish (long term perspective).

China’s fears that America’s $700 billion bailout plan may make the US budget deficit balloon to well over US$1 trillion this fiscal year.

The US government will fund the bailout by printing new money or issuing huge amounts of new debt, either of which will put severe pressure on the value of the greenback and on government bond yields.

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