The Golden Truth: The Daily US Dollar Chart and CNBC Fairy Tales...

Tuesday, March 30, 2010

The Daily US Dollar Chart and CNBC Fairy Tales...

(click on chart to enlarge)

FXE is the ETF trust that indexes the performance of the euro. Currently 23% of the float is short this trust. That is setting up an epic short squeeze in the euro that will create a lot of pain for the CNBC followers who are long dollars and short the euro. Of course the big banks, the ones who continually rob us in broad daylight without using masks, will make a fortune with their near-record short position in the U.S. dollar and their long position in the euro.

8 comments:

JDTuesday, 30 March, 2010
You got that right. Great chart/point. It's hilarious how people actually listen to these CNBC clowns. Your exactly correct though about how Goldman/JP and the likes set them up and knockem down time and time again.

I have to say I have been impressed with how strong gold has been despite USD strength over the last 4+ months. I feel like $1,000 is a solid floor as it hasn't even been tested. Serious support around $1,060-1,040 level. I don't know how long it will take for this EURO/Greece story to blow over but the real story is here in the states and when the party resumes over here with dumping the dollar I don't see gold sitting at these levels long. I expect $1200 to be taken out very quickly and a swift move to $1400-$1500 level becoming more and more likely. It's like a slingshot that keeps getting tugged back a little further and a little further.
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Dave in DenverTuesday, 30 March, 2010
JD, re: relative strength of gold/silver. My fund partner and I have been marvelling at how strong gold/silver, especially silver, has been relative to the dollar b.s.

Not sure they can engineer it below $1100 for any length time (i.e. more than a day or two) at this point because of the strong physical demand coming from Asia/India/Europe right now. I for a fact that wealthy people in Europe look across the pond at the U.S. and are in complete horror -my source told me that wealthy Europeans are buying verifiable 400 oz. bullion bars and sovereign-minted coins hand over fist and demanding delivery to their possession.

The only idiots who don't get are the dopes sucking down medical marijuana, transfixed by reality t.v. and glued to CNBC in this country.
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hopiumWednesday, 31 March, 2010
"The only idiots who don't get are the dopes sucking down medical marijuana"

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And this is a problem? haha J/K...I am with you gentlemen. The dollar is being artificially propped up and when she blows ( and she will ) there is going to be a boat load of bag holders...I would keep a sharp eye on the COMEX paper charade that too is coming to a swift and timely death.

Love the blog, keep up the good work
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Dave in DenverWednesday, 31 March, 2010
Thanks for the feedback hopium. Love your nickname!

Just to extend the metaphor, I guess the medical marijuana users will at least be holding a bag with something of value in it when this does blow up!

(by the way, I'm all for just legalizing weed - it's kind of a joke here in Colorado making people get a "prescription" - because anyone can get one).
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AnonymousWednesday, 31 March, 2010
Perhaps, the banks are just covering their exposure ot long dollar/short euro positions?
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Dave in DenverWednesday, 31 March, 2010
As per Friday's COT report, which was as of last Tuesday, the banks piled back into short positions in the dollar to a near-record level, taking the other side of large/small speculators (hedge funds, ETFs, small traders). They also got longer the euro, again taking the other side of the specs.

They piled into these positions as the dollar moved from 81.50 - 82 last week. The dollar is now testing 81. No doubt they covered some of their dollar short, but if the dollar loses 81 here - look out below.
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HopiumWednesday, 31 March, 2010
"(by the way, I'm all for just legalizing weed - it's kind of a joke here in Colorado making people get a "prescription" - because anyone can get one)."

I agree, but it should be taxed and traded like any other commodity, after all why not make money off of it. Oh and sold in nothing but Liquor stores IE: Over 21...And the packaging must contain the words

" No Government involvement " because if they get involved who knows what the hell you will be ingesting into your body, like cigarettes.
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Dave in DenverWednesday, 31 March, 2010
For sure to be used to raise tax revenues. Distribution details can be worked out. If you had licensed shops = separate from liquor stores - to sell it, it would actually create more jobs.

There is moral hazard here: giving the Govt more tax revenues risks giving them more revenues to waste.

Perhaps attach a requirement that ALL money raised from pot tax revenues HAS to be used to pay down Treasury debt - mandatory, no room for loopholes.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.