By Ahmad A Hassam
Greece has done what most critics were saying years back when Euro was being introduced: it is very hard to have a common currency for a very desperate group of countries each having it's own monetary and fiscal policies. The overzealous politicians had brushed this fact at that time. But overtime, critics seem to be correct.
Massive Greek debt was the start of the unraveling. Massive debt in Spain, Portugal, Ireland and other PIIGs countries is going to implode soon. In fact, most of the countries are under massive debt. Years of overspending and budget financing is about to catch up. Let's take some figures;
Debt to GDP figures for Japan are 200%, 115% for Italy, 113% for Greece, 83% for US, 76% for France, 73% for Germany and 70% for UK. But these figures do not take into account the implicit debt figures. If you take into account the implicit debt figures than it is even more bleaker with debt to GDP ratio for Germany as 255%, France 255%, UK 530% and US 570%.
Whatever, modern governments have a trump card that they often love to use. Print more and more money. You see fiat currencies can be created out of thin air by the central banks. This is what is happening now. But the Euro is falling and so will the US Dollar as more and more money will be printed to ward off this massive debt crisis. This massive printing of cash will put a severe burden on the bond market.
What this means is that gold will keep on rising in the future. This is best time to trade gold. If you are a forex trader, you can easily trade gold from the same platform that you use to trade forex. You can spot trade gold against the US Dollar. It is being predicted that gold prices can rise as high as $7,000 per ounce.
Trend trading is what makes a fortune. If you can spot a trend developing in a market at the right time, you can make a fortune. A clear uptrend is there in the gold market. In the near to long term future, gold prices are going to appreciate and sky rocket with Euro and US Dollar prices going down. This is the right time to go long on gold and short on US Dollar. Gold market is in a long term uptrend. This is the best time to profit from gold trading!
| Mr. Ahmad Hassam has done Masters from Harvard University. Watch this Freedom Forex Formula video that shows a FREE forex method responsible for growing a $34 million forex account from scratch. Download this 1 Minute Forex Trading System FREE! Article Source: http://EzineArticles.com/?expert=Ahmad_A_Hassam | |
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