ZUMA DOGG’S GLOBAL ECONOMIC PREDICTIONS FOR WALL STREET IN 2011: This year will mark the death of the U.S. dollar as the U.S. government will continue to take measures that will result in continual devaluation of the dollar.
China, not wanting to be stuck with a bunch of paper (bonds and dollars) that are becoming more and more “worth less,” will have to start cashing in their TRILLIONS in bonds (plus the cash dollars) — and start spending it on stuff. It’s like those tickets you get at the carnival for prizes. The carnival tickets are becoming worth less, needing more and more of them to buy the same fuzzy bear, so you better start buying up everything, before they are completely “worthless” as opposed to “worth less.”
In China’s case, they don’t need more carnival prizes, since they are the ones making them anyway. So expect them to spend their bond and cash money on U.S. equities (U.S. stock market and gold.) SO ALTHOUGH THE ECONOMY IS IN THE TOILET…DO NOT WORRY ABOUT THAT IN REGARDS TO THE U.S. STOCK MARKET IN 2011. IT WILL BE PROPPED UP, QUITE NICE BY CHINA, WHO CANNOT AFFORD TO BE LEFT HOLDING THE BAG (of bonds), as the U.S. continues to tie heavier and heavier anvils around the dollar as they are moving to push it over the cliff.
EXPECT crude oil prices to go through the roof in early 2011, which of course will drive up the cost of gas at the pump, through the roof. (Back to record price levels.) So the ETF USO is one to consider. CONTINUED record prices for gold and silver. (Although you will see “ups and downs,” expect a long-term “up.”) EXPECT a lot of record levels in 2011. INCLUDING a rally of the financials. (They’ll make sure the books look good so they can receive their bonus checks.) And, since the financial stress tests are no longer being done, Wall Street can start being risky cowboys, again, and start making some serious money. Hope you do to. More to come from the global economic prophet and master…