EXIT TALK

all the exit talks by governments esp the us are just bluff, noises that we all should ignore, why?

check my earlier blog on 2 oct 2009.

there are just too much hangover from the leverage generated during the boom years, only the basic fallout is contained and the us government is already hands tied from further stimulus because much of what is promised and passed by congress had been spent or bailed out. 2010 will be the year that investors should pick up government's tab. it is, however, easier said than done as we do see all the private debt has been replaced mostly by govt debt, govt debt may not be safer as is the case with greece, iceland, ireland etc. uk and us fiscal positions are just as precarious.

we may see even more stimulus ahead if the recovery begins to falter thus lending further support to gold and precious metal as currencies become less reliable.

hiking interest rates in the us is just fantasy, expect no hikes for at least 12 months or maybe only one hike of 0.25 only.