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4 thoughts on “Why Wall Street Jumps When Main Street Slumps

  1. mathischristian says:

    Didn't GN just write recently that China was going to a gold standard? Or did I misunderstand?

  2. Texas Chris says:

    They're allowing their people to buy gold, yes, but not backing the currency with gold. Remember, the Chinese government owns the gold mining apparatus in their country, so giving them access to a worthless metal (their opinion, not mine) is a way to pry a little more money out of their pockets.

  3. The central banks can inflate all they want, but eventually one of the EU countries is going to default, and when it does it will trigger those credit default swaps Wall Street firms like AIG sold as insurance to investors. And Wall Street will not have the cash reserves to pay all those claims when the Great Default comes.

  4. A Patriot says:

    There will be no default in our lifetime. If necessary they will use another "new" word for the crunch, but they will never call it a default. Your worried about debasing the currency? Our currency will never reach zero value, they'll change the definition of currency value so they can debase it further. However, at some point, some central banks will not go along with the others, and that friends is how major wars get started which of course resets everything to zero.