Archive - Aug 19, 2009 - Blog entry

For the next dozen years or so, the U.S. stock market will be a wild roller-coaster ride—setting all-time highs and multi-year lows in the process. While the twists and turns of this ride are still to be written by history, the long-term, sideways “range-bound” trajectory has already been set by the eighteen-year bull market that ended in 2000.

Much has been said about Goldman Sachs by articles like the one Mr. Matt Taibbi wrote and published by Rolling Stone on July 2, 2009 - “Inside the Great American Bubble Machine”. But most have not heard about Goldman Sachs involvement in the initial public offering (IPO) of Baidu (BIDU) and the subsequent BIDU share price movements back in 2005 and 2006.

Here is my latest article explaining why the Chinese economy should not make us feel inadequate and explaining the consequences of what is taking place in China on the U.S. stocks.

Inflation or deflation, the Chinese will lose most of the value of their USD-denominated holdings, and the USD will lose the confidence of the rest of the world. What then?

A scenario, probably far-fetched, that points to a stronger Russia over the next half century.