My thoughts on the Markets today

Well, today we're seeing gold shoot up to a 7 month high. Just last month it was at $840 an ounce, today it is trading at $970 an once. And the Dow Jones industrial dropped nearly 300 points. What does this mean to you?

Well, first let me explain how this happened. Last night someone in Asia moved over a trillion dollars in USD denominated assets. It is believed that this was almost exclusively a currency trade. This helped the USD gain some new strength. So, our dollar is worth more what could be the problem? Well, we should be expecting a devaluation. According to the Federal Reserves' St. Louis website we have increased our monetary base by 70 percent in just a few months. So we should be seeing our dollar devalue. Meaning that this new strength won't last very long as it seems someone or something is holding back the crash by calling back dollar reserves. It's artificial demand, and artificial demand is the very cause of why we're in this mess. It isn't real.

So why did Gold shoot up regardless of the dollar gaining strength? Because those who run the gold market probably weren't coordinated with this huge buyup of American dollars. And they too, know that this could not possibly last. And that too explains the DOW being down so much in just a few hours. Wherever these dollars went, it is obvious that they were pulled right out of the American Economy.

This all took place as Sec. of State Hillary Clinton was in the Asian region. This make me wonder whether they struck a deal to buy up American dollar en masse to help pay for the bailouts. Including the up coming 1.5 trillion bank bailout. This would seem a sound strategy to bolster a plan that would otherwise destroy the dollar...But again, this is temporary and our next rounds of "stimulus" will likely force the dollar down.

[edit on 17-2-2009 by projectvxn]

Interesting stuff, but who would have been moving the 1 trillion dollars?

Any time a stimulus bill is passed in the US, it seems to send the DOW into a downward spiral, it sort of looks business as usual to me on that one.

I wonder how long they can hold back the crash then?

That's the thing. I have no idea, and no one else does, who bought up all these dollars. But I'm willing to bet over the next month alot of these dollars will be dumped into gold. Which may also be an explanation for the huge rise in gold prices since just last night.

It could also be that gold is being paid for by these very same dollars. China has agreed to continue to buy our bonds(Essentially debt) and it may be that they are seeking to shield themselves from a US government default by buying into the gold market with all the USD they have in their reserves.

reply to post by projectvxn




well, reports today (tues) say that Asia & especially Japan
scarfed up the PM 'Platinum' in a big way today.

i wonder if the $1trillion included this PM move or was it all the FOREX
money exchange rates??


It is fairly apparent that gold was pushed up most exclusively by the USA,
we didn't see a up move in gold on Monday like we did on Tues. when
the US was closed then open on those two different days

That's the thing. While the patterns are fairly obvious, the reasons are not yet clear. This seem to be opening huge gaps by which the Asian and American economies are being further exposed to danger. None of this makes sense unless you assume that China is insulating herself against our bad debt. Preparing for the real crash.

i bet we see a bounce WED. and gold will probably be taken out to the wood shed........but who knows.......and i am definitely not concerned about inflation now.......the velocity of money is falling off a cliff so banks are not lending the money they are borrowing or receiving....they are saving it to purchase smaller banks or for the rainy season ahead

Didn't SPX break thru resistance at 800 (which triggers some automatic selling) or was there a number below that of signifigance

There wasn't much in the options that caught my eye last night or today. I was trying to nail down this pattern anyway.

There was an oil swap for debt with China that could have brought down the oil market, and that could be a contributing factor to why gold shot up. People just moving from one commodity to another. But that would take alot of people all at once.

[edit on 17-2-2009 by projectvxn]

GLOBAL MARKETS-World stocks bounce higher; dollar falls
Page One

LONDON, Feb 19 (Reuters) - World stocks rose from the previous day's three-month low on Thursday, while the dollar and government bonds fell, as some European corporate quarterly results were better than the most pessimistic expectations.

Nestle (NESN.VX) the world's biggest food group, beat forecasts with underlying sales growth of 8.3 percent in 2008 and it was cautiously upbeat for 2009.

BNP Paribas (BNPP.PA)'s fourth-quarter loss of 1.37 billion euros ($1.73 billion) was in line with last month's guidance. Austria's Raiffeisen International (RIBH.VI), eastern Europe's second biggest bank, reported a 17 percent rise in 2008 net profits.

While European stocks trimmed early gains, a rise in U.S. stock futures helped improve overall investor morale. Oil prices also rose.

"We've got (U.S.) stock futures pointing higher and that's going to help risk appetite so we're seeing the dollar reverse course a little this morning," said Rabobank currency strategist Jeremy Stretch. MSCI world equity index .MIWD00000PUS rose 0.4 percent, having hit a three-month low on Wednesday. The FTSEurofirst 300 index of leading European shares .FTEU3 was up 0.1 percent. Emerging stocks .MSCIEF gained 0.6 percent.

U.S. crude oil CLc1 rose 1.7 percent to $35.20 a barrel.

Euro zone government bonds fell, following losses in U.S. Treasuries, after President Barack Obama's $275 billion plan to prop up the housing market fanned expectations that the government would increase public borrowing.

"Another day, another initiative," Calyon said in a note to clients.

"This is how it sometimes feels, and it is perhaps no surprise that markets are becoming a bit exhausted at trying to discern the impact of whatever the latest announcement, policy or programme might be."

The March bund futures FGBLc1 fell 40 ticks.

The dollar .DXY fell 0.7 percent against a basket of major currencies.

I knew this wouldn't last long. The dollars that were moved en masse were apparently attributable to a bond dump somewhere. Probably an Asian country trying to put together a bailout and calling in the International Rainy Day Fund that is the US Bond market. Even Gold wasn't safe from this, though its' price jumps that left it at $972 today after a high of almost $990 is a pretty good indication, to me, that there is some sort of manipulation going on to keep the dollar strong for just a little while longer...Or they're trapped trying to plug millions of holes in a very large dam holding back the debt that will drown us all.



[edit on 19-2-2009 by projectvxn]

[edit on 19-2-2009 by projectvxn]