muses of the moment

May 25, 2010

Short term outlook from Bob Janjuah

Filed under: Economic Crisis, Fiat Currency, Stock Market, The Dollar Crisis, The Federal Reserve — totallygroovygirlfriday @ 1:29 am

Another great post from Bob via Click here.

Basically we are looking at deflationary pressures in the next few months from all global markets. Then if these markets really start to spiral, major printing of money and market pumping late this year/early next year. With possible inflationary repercussions from that process afterwards.

Groovygirl expects more of the same, government/corporate intervention in the markets to prevent outright deflation. Do not trade in this environment unless you know what you are doing or you are completely crazy.

There are a couple of other economists sounding the alarm of deflationary pressures based on the numbers they are looking at and the rate spreads in Europe. This looks like and ongoing deflationary, up and down battle through the end of the year at least.

Groovygirl has said before that it will be clear to everyone that we are still in real economic trouble by the end of 2010. We will be in full fear mode by December.

Update: euro is falling….now around 1.21, 1.20 is a key support. They are trying to move it up as I write. All global markets fell last night. Italy says no more than 5000 euro in cash, this is a form of currency control (they are having a run on their banks). Spain merges 4 banks, trying to create a “too big to fail”? European crisis is NOT contained, bailout not working. Expect more money to be thrown at this problem with little result.

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