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New Year 2008 may destroy USA’s struggling economy
A forecast made by Denmark-based Saxo Bank, chaos will take a grip on the world in 2008. Oil prices will skyrocket to 175 dollars per barrel, the Chinese market will collapse by 40 percent, whereas the U.S. will suffer a 25-percent setback. All this will happen because of the mortgage crisis in the USA which already slows down the U.S. economy.
High oil prices can bring only good to Russia, though. On the other hand, even if the above-mentioned forecast comes true, Russia will face serious problems in its economy too. It is worthy of note that the majority of Saxo Bank’s previous forecasts for 2007 have proved to be true to fact.
On New Year’s Eve most people recollect the outgoing year and hope for the best. However, Saxo Bank experts seem to be an exception from this nice tradition. David Karsbol, the head of market strategy for the bank, said that the forecast had not been made to intimidate people. “It gives a reason to think about the future of the market,” he said.
Saxo Bank experts believe that oil prices will hit the level of 175 dollars per barrel in 2008, whereas grain prices will double. The U.S. and the Chinese markets will collapse by 25 and 40 percent respectively by the end of the summer of 2008. Every third of ten U.S. large building companies will go bankrupt. The British economy will also start declining.
The bank has its forecast on the new U.S. president too. The bank predicts that Ron Paul, the Texan Republican, will take the office in 2008.
On the other hand, if the U.S. economy slows downs its development as predicted, it would mean the decrease of the oil consumption and the oil price.
AntiSpin: For the unintiated, Saxo Bank is a real bank not some bunch of yapping goldbug yahoos. The Ron Paul prediction is a stretch, but what the hell... as long as you're hanging your stuff out there, might as well go for it!
Remarkable is the parallel between the Saxo Bank prediction and the inflation prediction we've been chiming at here for years. Does anyone hear Mish-esque deflation speech from these Ron Paul loving Danes? Not me. But expect Mish to soon claim... "Oh, I've been saying inflation all along!"
Meantime, gold has been "beating inflation", says this reporter...
Gold ETFs fare well, beat inflation
Gold exchange traded funds (ETFs), a product that made a debut in Indian market in 2007, have managed to post good returns this year. They gave returns higher than inflation as gold is considered as hedge against inflation. It is also seen as a tool for diversification for the fund industry.
I like gold as much as the next guy, but gold hasn't "beaten" inflation. It's only kept up with it. It's the reported inflation numbers that haven't kept up with inflation.
Nonetheless, I am happy to report...
Gold at $822, baby!
The gold price control crowd must still be on holiday. Platinum, silver... everything is up!
Everything except demand, that is. Fred posts here that oil demand's been diving even though prices rise.
How can that be? I thought the WSJ and every other asshat business press outlet told us that China and India and the global boom were driving commodity prices.
Gold prices are telling us everything about this so-called "boom" and how it's gonna go: demand for dollars down, supply of dollars up.
Poom!
This is my best approx. of an itulip antispin news. FRED... edits pls!
A forecast made by Denmark-based Saxo Bank, chaos will take a grip on the world in 2008. Oil prices will skyrocket to 175 dollars per barrel, the Chinese market will collapse by 40 percent, whereas the U.S. will suffer a 25-percent setback. All this will happen because of the mortgage crisis in the USA which already slows down the U.S. economy.
High oil prices can bring only good to Russia, though. On the other hand, even if the above-mentioned forecast comes true, Russia will face serious problems in its economy too. It is worthy of note that the majority of Saxo Bank’s previous forecasts for 2007 have proved to be true to fact.
On New Year’s Eve most people recollect the outgoing year and hope for the best. However, Saxo Bank experts seem to be an exception from this nice tradition. David Karsbol, the head of market strategy for the bank, said that the forecast had not been made to intimidate people. “It gives a reason to think about the future of the market,” he said.
Saxo Bank experts believe that oil prices will hit the level of 175 dollars per barrel in 2008, whereas grain prices will double. The U.S. and the Chinese markets will collapse by 25 and 40 percent respectively by the end of the summer of 2008. Every third of ten U.S. large building companies will go bankrupt. The British economy will also start declining.
The bank has its forecast on the new U.S. president too. The bank predicts that Ron Paul, the Texan Republican, will take the office in 2008.
On the other hand, if the U.S. economy slows downs its development as predicted, it would mean the decrease of the oil consumption and the oil price.
AntiSpin: For the unintiated, Saxo Bank is a real bank not some bunch of yapping goldbug yahoos. The Ron Paul prediction is a stretch, but what the hell... as long as you're hanging your stuff out there, might as well go for it!
Remarkable is the parallel between the Saxo Bank prediction and the inflation prediction we've been chiming at here for years. Does anyone hear Mish-esque deflation speech from these Ron Paul loving Danes? Not me. But expect Mish to soon claim... "Oh, I've been saying inflation all along!"
Meantime, gold has been "beating inflation", says this reporter...
Gold ETFs fare well, beat inflation
Gold exchange traded funds (ETFs), a product that made a debut in Indian market in 2007, have managed to post good returns this year. They gave returns higher than inflation as gold is considered as hedge against inflation. It is also seen as a tool for diversification for the fund industry.
I like gold as much as the next guy, but gold hasn't "beaten" inflation. It's only kept up with it. It's the reported inflation numbers that haven't kept up with inflation.
Nonetheless, I am happy to report...
Gold at $822, baby!
The gold price control crowd must still be on holiday. Platinum, silver... everything is up!
Everything except demand, that is. Fred posts here that oil demand's been diving even though prices rise.
How can that be? I thought the WSJ and every other asshat business press outlet told us that China and India and the global boom were driving commodity prices.
Gold prices are telling us everything about this so-called "boom" and how it's gonna go: demand for dollars down, supply of dollars up.
Poom!
This is my best approx. of an itulip antispin news. FRED... edits pls!
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