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Tuesday, July 28, 2015

Kevind53: BRICS - Bubbles & GCR

Kevind53 from DinarDaily.net shares thoughts on BRICS, BUBBLES and GCR 

We are probably looking at a serious bubble, but while we will see derivatives effected, I do not think it is a derivative bubble per se, but rather a stock bubble driven by virtually nonexistent interest rates. ‘

The market has been strong, not because everyone was so confident, but because there was nowhere else to put your money and hope to get any sort of return. 
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As far as markets wobbling, they always have and always will, since to a large extent, they are emotionally and not rationally driven, that is much day to day trading is based upon confidence and enthusiasm or the lack there of. Even the technical traders feel the effect since the prices etc. are so strongly effected.

As far as gold and silver, I am no expert, but I was telling folks that I was nervous about precious metals five or more years ago, I just did not like the pattern I was seeing, as it looked to much like a bubble.

The part about a BRICS driven reserve is laughable. Minus China, the BRICS total economy is less than 1/3 of the US. Nor do any of the currencies, including the Renibi, come close to the long term stability that nations and investors want and find in the USD, which BTW, is the strongest it has been against other currencies for many years.
The fact that China so tightly controls the value of the Renibi also stands in the way of it becoming a true reserve currency.

Last but not least, the GCR, which makes no economic sense what so ever ... in other words, it is nonsense. 

Currencies are valued where they are for a reason, that is what the markets can support value wise given market conditions. We will not see a GCR, there are no plans for such, nor did BASEL III in any way mandate asset based currencies.


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