World Economies Sinking

Dow Theory Letters (05/21/2009)
"There were no 'green shoots' on the cover page of today's Wall Street Journal. Instead, in large black letters the headline read:
WORLD ECONOMIES PLUMMET. Partners in decline. Major Economies' GDP Fell Sharply In the First Quarter. US down 6.3%, Germany down 14.4%, Japan down 15.2%, Mexico down 21.5%.
Russell Comment - With U.S. consumers cutting back, who does the rest of the world sell its merchandise to? Which is why economies around the world are sinking. Now it's a case of competitive devaluations. Beggar thy neighbor. There's one item they can't devalue - it's called gold. If you can't trust sinking fiat currencies, where do you go? It's called gold."

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