The U.S. Dollar about to break out ?

reply to post by MischeviousElf


Well, they keep piling into bonds. Yield is down to 1.93%, price is at a 100-year high I think.

The dollar seems quite perky at the moment.

The demand for cash is very high.

As for metals and commodities, why would you accumulate them when the price of money (debt) is going up? It doesn´t seem to make much sense.

reply to post by galdur


The dollar has lost 95% of its value over the 100 years since the Fed Reserve has been around.

I don't think theres much to say except to be prepared for the worst. America will enter another depression much worse than the 1930s.

Its just a question of how long these crooks can keep the bubble from bursting.

reply to post by marg6043



Historically the strength of the Dollar as the Reserve Currency is due to the US Military and OIL.

Gold and Silver have been kept artificially low over time by the US to bolster the Dollars image and value.

On the contrary...

Gold is the still the method of asset transfer amongst the world's central banks.

The worlds largest holder of Dollar reserve the Chinese, and the rest of the world, are buying GOLD hand over fist to bolster their Gold reserves.

As the Chinese have warned, that due to the lack of confidence in the Dollar as a Reserve Currency primarily due to fiscal irresponsibility by the US Govt.and subsequent world wide inflation.

Govts around the world are returning to the stability of Gold.

Global pension funds with assets @ twice the US's annual GDP, are currently only a fraction of a percent invested in Gold. When they begin to invest in Gold due to the collapsing/weak performing US stock market, Gold and Silver will only continue to rise, at even a quicker pace.

This trend is NOT going to change anytime soon. Corrections in price will always exist in any market as long as there exist buyers and sellers.


Plain and Simple

Originally posted by galdur
reply to post by MischeviousElf

 

Well, they keep piling into bonds. Yield is down to 1.93%, price is at a 100-year high I think.

The dollar seems quite perky at the moment.

The demand for cash is very high.

As for metals and commodities, why would you accumulate them when the price of money (debt) is going up? It doesn´t seem to make much sense.

Who exactly besides thew fed is piling into treasuries and bonds of the $ that have to be sold before the US can actually legally print any money?

Of course money is going up because soo much debt is tied into the currencies, but as the US recently nearly got Junk status what would they be worth then, nothing overnight.

Also debt and interest keep the system going so its a non priori.

There is no money without debt as far as modern capitalism goes esp the $.

The worth of both the price of the dollar as an interest making machine and also its perceived future value based on USA economic jobs, growth and manufacture as in treasuries is as far as ALL the long range data and forecasts, opinions and reality of the street under huge pressure, more so than at any other time in history.

Thats why people buy real things not pretend o's and 1;s and bits of tree with ink on them.

You may be right the $ will go up and some short could be made, but you are certainly wrong for anything of any rising or real value after spring of next year is the $ even still exists, that is unless something "happens" to allow the USA huge new "technology" release suddenly or a resource/state/land grab.

Kind Regards,

Elf

Originally posted by SuperTripps
my thoughts are gold to 5000 an oz, then double to 10z in the parabolic state

25k is possible

Not likely, because you're talking about a SHTF scenario and at that point people will realize they can't eat gold, or pour it into their gas tank, or use it to protect themselves. A barter system would take over and gold would plummet just like every other cash-replacement commodity.

But personally I don't see a SHTF scenario in our future. People seem to think that we're in some kind of unusual position right now, but we're really not, we're just on the downside of a typical cycle. When people start running around screaming that the sky is falling it's actually a good sign because it signals that we're at the bottom or the bottom is near. Like Warren Buffet said, "Be fearful when others are greedy and greedy when others are fearful”. There's a tremendous amount of fear in the markets right now, and fear = buying opportunity.

reply to post by nh_ee


I defer, while I agree that the dollar will keep going the same way it is today, Gold is just hyper-inflated to lure the few, that is done through US and those that does it is no other but Goldman Sach, when they speculate so the prices of gold goes up.

China can buy all the gold they want and so India, they can try to control the prices but US is the one in charge of that.

America fat rats corrupted practices are always the winners.

Another thing JP Morgan manipulates the prices of Silver, see how the two work together, Goldman and JP.

reply to post by SavedOne



its very likely in the end even without armageddon

been hearing the can't eat gold crap for many years


simple fact is folks like you will eventually be priced out of even buying an american eagle

and it won't look back


all the current gold found can only fit in 2 olympic sized swimming pools. there is a very real scarcity issue along with all the other arguments as well

reply to post by nh_ee


gold could go to 5k an oz just if pension funds started shifting into it

exactly. you saw that article too i see

reply to post by CasiusIgnoranze


Yet, the price of govt. dollar denominated debt is at historic highs.

That´s remarkable.

No, it´s not only the FED buying those bonds, institutions and corporations and foreign central banks are doing most of the buying. This month Warren Buffett said, I´ll buy govt. notes at zero % yield, we don´t like it but we´ll do it.

The FED itself is virtually bankrupt since it´s leveraged 50-60 to 1 against its capital. This is way worse than Lehman Brothers. So, QE3 is out of the question. All they can do at this point is to sell short notes and buy long bonds. It´ll be up to others to fund Uncle Sam´s deficits.

reply to post by MischeviousElf


It´s for best to focus on what Wall St. doesn´t talk about.

A weak dollar is certainly good for US multinationals in the DOW which then get to book more dollars back home in revenue and profits, resulting in higher share prices. The DOW then leads the whole stock market.

But a falling dollar is a disaster for US small business, that which employs most of the workforce. It increases input costs, eats into profits and discourages hiring. Also a falling dollar reduces consumer purchasing power which also hurts those small businesses. So it´s a double whammy. This is probably the main reason for the very weak employment picture.

I believe that the only way to rectify this is through a rising dollar which should result in falling price of commodities and raw materials thus bolstering US small business and its hiring capabilities. It´s absolutely an economic necessity IMO. Maintaining the historic mean of the Dollar index, perhaps 85-90ish should be the objective.

reply to post by yourmamaknows


Gold will be the next bubble to burst, don't put so much faith in it, its price is going up on fear, no actual reason.

Invest in can food, dry food, and bullets, the only currency that will actually be worth something in a collapse.

reply to post by benrl


The speculation in commodities and raw materials ( the cost of basic economic input) vs.the dollar is absolutely stupendous and way beyond any market price discovery mechanisms. It´s totally divorced from the forces of supply and demand. To better understand how this works, google goldman sachs warehouse business .It´s another bubble scam from familiar quarters. This mob owns both legislators and so called law enforcement. Its current bubble will eventually burst like the earlier ones. Will the mob then have its political assets pass the bill to taxpayers as before and then turn to the next bubble scam? Rinse and repeat? Only time will tell.

reply to post by St Udio


Interesting you bring the Asian markets trying to get off the dollars, I have come to the conclusion that Oil producing countries will back the dollar while those that do not have oil wants to bring back the gold standard.

Still as you can see the oil wars is going on full gear and the agenda is on schedule, regardless what party or president is in power, bringing down unfriendly to US regimes and control oil production.

We only got Iran now to change, sadly China has billions invested in their oil.

Originally posted by benrl
reply to post by yourmamaknows

 

Gold will be the next bubble to burst, don't put so much faith in it, its price is going up on fear, no actual reason.

Educate yourself... Gold is not a bubble. Check this link and look at the graph gold and silver have a long ways to go. The long run up of gold is actually the correction to the debt based fiat currency bloated economy... It is the meter for debasing the currency. Paper traders have no clue what they are talking about when the refer to gold as just another commodity to be bought sold shorted etc. and will be caught flat footed when the balloon goes up. Valuing gold in fiat currency is a fools errand.... What you are witnessing is the devaluing of the paper currency not gold... Gold and silver have been the standard de facto or officially for thousands of years. That is why the big boys are buying it up despite the rising prices...

As you can see, a very significant portion of the world's wealth was routinely held in gold throughout the twentieth century; that is, until the currency encountered wholesale cultural abandonment in favor of the almighty dollar and its worldwide fiat counterparts, and the global economy embraced obscene degrees of fiat-based leverage that we now know set the stage for our ongoing financial crisis.

www.fool.com...

And gold has even still been the best investment of the last 11 years. The gold bubble BS has been repeated all along the way.

www.marketoracle.co.uk...

reply to post by galdur


Goldman Sach runs the US government and the Federal Reserve, I posted on another thread of how many Goldman Alumni are in positions of power in the government and this is been happening for a long time regardless of who is the president.

reply to post by marg6043


Absolutely, and over time this has fostered the perverse idea that markets should somehow lead the economy instead of the other way around. This idea was always doomed to fail but still it has been so far a win-win situation for the mob who instigated it. In the last decade we´ve seen the stock market crash by 50% twice, not to mention the mortgage scandals. Now, we have this commodities bubble in a world that is totally awash in oversupply, overcapacity, incredible technological advances and a totally endless supply of dirt cheap labor. So, you have these deflationary tsunamis which will keep rising for a long time to come vs. inflationary speculation. I think it´s intrinsically a doomed game for the latter. The price of money (debt) will thus stay very high.

Originally posted by marg6043
reply to post by galdur

 

Goldman Sach runs the US government and the Federal Reserve, I posted on another thread of how many Goldman Alumni are in positions of power in the government and this is been happening for a long time regardless of who is the president.

Ah Ha... you pointed out one party of the Shadow government...the elites that run the country and were never elected and are only subject to the authority of another member of the shadow government, namely the Federal Reserve focused in NY Fed

the news today is the SWISS are now devaluing their currency


they don't want the safe haven buying

that says it all. gold going to 5k in a few months

reply to post by SuperTripps


Swiss are scared shiftless of deflation. Their currency is way overvalued which hurts their export-orientated economy. The US situation is the opposite, since the economy is heavily dependent upon imports. So, I view this Swiss attempt mostly as trying to establish equilibrium between currencies. This is a result of the dollar being a counter-trade to pretty much everything else. That´s very one-sided indeed. Something´s got to give and I think the Swiss are admitting this.

CNBC reports that a letter from Fed Chairman Bernanke noted that the Fed is closely monitoring developments in Europe. Yeah well, who isn´t? It´s not really newsworthy.

What is really newsworthy though, which is why you don´t hear about it in the news, is thee fact that the FED is at the end of its line being leveraged 50-60 to one against its capital. So, it´s out of the picture. The MARKET will have to sort out its own mess. Best of luck, galdur.