I think US will be in more trouble if it loses AAA. A lot of people are going to back out of using US Treasuries as their default investment. They will have trouble borrowing and have much higher cost in borrowing themselves. People will resort to gold much more. Oil prices will shoot up against the USD. Domestic US will inflate, if not hyper inflate.
Using this just to scare China and to reduce export cost is self destructive at the same time.
Besides, with a drop in USD, who owns the most US denominated asset in the world? It's the US.
Moral of the story? With QE3 not completely off the table, Gold have a lot way to go before it's gonna top. |
發表於 2011-6-9 14:44
|