By John Lee, CFA
Nov 2 2007 4:40PM
In my October 4th article titled: “Depression, Debt Implosion, Gold, and Prosperity” (http://goldmau.com/marketupdateoct04.php), I argued that:
“In the last four weeks (September), we have witnessed the worst financial event in the US over the last 50 years. The subprime mess shook the US financial system to the core, as it directly affected the marketability of the $30 trillion+ US debt market.
1. The worst possible event that could trigger debt implosion has already occurred, with demand for the multi-trillion US mortgage debt market suddenly and completely dried up. Yet the world has gone on with business as usual.
Would you touch beef (US debts) again knowing there is a significant quantity of mad cow disease (subprime) going around?”
The dollar’s free fall will continue, while gold and RMB’s rise will accelerate in pace. We will look back and kick ourselves for not buying gold below $850. For those who hold dollar savings, to borrow from the classic line from the movie “Romeo Must Die” by the Kung Fu master Jet Li to his brother who betrayed him – “That was a mistake.”