Why the Next 30 Days are Critical for the US

I have been a loyal reader and follower of Robert Kiyosaki, investor, businessman and the author of Rich Dad, Poor Dad, for the past few years now. I have been even more closely following him the past 1-2 years ever since the financial recession began. Ever since I have done that, I have been able to see a bigger picture of what the economy is going through. Understanding the economy the way he does, and taking into accounts important events in the past few hundreds of years (since the banking system was created) makes it come almost naturally for you to see what might happen in the near (and even farther) future.

What will happen in the next 30 days, according to Kiyosaki, is very crucial to the economic future of the United States. He had urged his followers and readers to watch the Dow Jones the past few days. On 19 January 2010, the highest level of the Dow Jones was at 10,725. If the Dow Jones breaks this record and stays up and climbs even higher, the US is definitely going to experience an economic recovery.

But if the Dow Jones does not reach the highest level of January, or reaches it but only for a short time to fall sharply again, the market will continue to decline and even may experience another crash again.

Only a little bit over 12 hours ago, I watched the Dow Jones broke the highest level of January and peaked at 10,809.85 on March 19, 2010 at 09:36 AM. It only stayed there for ten minutes before it dropped to 10,776.82. This is still above the highest in January 2010. At 13.44 the Dow Jones dropped at 10,702.31 and closed at 10,741.98 for the 19th of March.

Besides watching the Dow Jones closely, Kiyosaki advises to also pay close attention to the Federal Reserve Chairman Ben Bernanke who promised to stop printing money at the end of March 2010. This is called ending “Quantitative Easing”. As we all know the Federal Reserve has been printing money out of nothing backed by nothing since Nixon took off the US dollar from the gold standard in 1972. If in the end, the US indeed stops pumping trillions of dollars into the economy, it will be interesting to see what affect it will have to the Dow Jones, the global market and the entire economic future of the US.

Watch very closely!

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