The Golden Truth: The Bell Tolls For The U.S. Dollar

Friday, June 18, 2010

The Bell Tolls For The U.S. Dollar

Check this out - no commentary needed - you all can interpret these golden nuggets as you see fit. I know what I think is happening....The first two are from Bloomberg:

Medvedev Talks Up Ruble as World Reserve Currency of the Future: Move Aside Uncle Buck
Russia to Buy Canadian, Aussie Dollars for First Time: Not So Loonie

Here's someone else who has figured out that China is buying a lot more gold than disclosed. What this commentary did not mention is that it is suspected that China is buying a lot through its sovereign wealth funds, which do not report reserve positions to the BIS: The Anti-Dollar Trade

14 comments:

AnonymousFriday, 18 June, 2010
Ahhhhhhhhhhh...top dollar calling again D.

That means a rally is due. I'm on the buy.

Thanks for the heads-up Chico.
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Dave in DenverFriday, 18 June, 2010
I called a top at 84. We will be well below that level before June 2011. In fact, it will shit the bed when the Fed is forced by the economy and debt requirements of Obama to roll out QE2, which will be QE1 x 3, at least.

but hey, since my top call in the dollar, my gold/silver positions have ballooned up in value nicely.
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AnonymousFriday, 18 June, 2010
World Reserve Currency of the future? We don't need no steenkin' World Reserve Currency.
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JoeFriday, 18 June, 2010
Yes Dave and think about what Gold/Silver will do when the USD does fall off the table. We have an ominous Astro outlook beginning around mid-July and this is when I expect the markets to shoot craps.

Joe M.
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AnonymousFriday, 18 June, 2010
Said by a man who considers Sorcha Faal to be a creditable source...
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AnonymousFriday, 18 June, 2010
A bit early to call a top in the dollar. It'll be a refuge for another year or two and probably hit 100 when the Euro disintegrates.

Russia is a joke--trade the corrupt banksters in NY for the mobsters in Moscow. No way Russia will ever be considered for a world currency.

OTOH, watch out for China in 3-5 years. They're a sly lot.
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RothbardFriday, 18 June, 2010
More Stimulus may be needed, Obama

http://www.nationalpost.com/news/More+stimulus+needed+Obama/3171417/story.html

Where on earth did you get the idea there may be QE 2.0? Or should it be called 1.2, since all that made things appear better is a liquidity injection of trillions...with nothing actually mended or repaired?
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AnonymousFriday, 18 June, 2010
Dave,
I love your site!! I've commented before but mostly I just read and enjoy what people have to say. It's not relevant to this post but I'd like to comment on the "trillion $$ mineral finds in Afghanistan". I'm a geologist by trade and have worked gold, silver, uranium, and base metal plays.
The info is absolute horse puckies. There is no such thing as fly over geophysics that can identify mineral deposits! Even the best geophysics can barely pick out the difference between graphitic (ie Carbon) rocks and metallics let alone identify deposits. If they have something like that somebody in the business would have long ago invented it-- many geophysicists have invented their own unique systems and NOBODY has anything like that or I would be out of a job!
As you well know from being in the investment business developing a deposit to the point where it is proven to be a) there and mineable and b) economic takes years and millions. Not a chance in hell a few government geologists (if they are anything like Canadian government geos they couldn't find a deposit if they were looking at it) and some Pentagon dudes could identify (let alone prove) a trillion $ worth of ore in 20 years of looking!!
I read the NY Times article about it and the part that shocked me were the blogs/ comments about it. The sheeple are talking about how hard they will be to exploit and the political difficulties/ training Afghans to handle it themselves, etc. I can't help wondering when the sheeple will wake up and realize they are being lied to so much about so many things. Canadians are a little more politically aware (maybe) but it boggles my mind. The "transparency in government" is looking pretty damn opaque to me!!
Cheers to you for putting so much time and energy into this site to try and educate people-- sadly I suspect only the already aware follow you!

Justin in Canada
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Dave in DenverFriday, 18 June, 2010
Justin, thanks for your feedback and support. That's great color on that Afghanistan mineral b.s.
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anliuFriday, 18 June, 2010
Dave, I have a feeling everyone is making a huge supposition that the fed will play along with the puke eating game of financing the government's fiscal deficits. It takes two to tango and if the fed stops the treasury stealth buying then interest rates are going to sky rocket, which is what bubblespan is warning about... Things are about to get interesting.
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Dave in DenverFriday, 18 June, 2010
Fed has two choices: print or let the system perish.
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hal TGIFFriday, 18 June, 2010
or print and the system will perish anyway

I like to call it a reset or reboot.

USA v2.01 a radical change
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anliuSunday, 20 June, 2010
I'm surprised this article hasn't gotten any air play from the gold sites I visit.

California on 'verge of system failure’
http://www.theglobeandmail.com/report-on-business/economy/california-on-verge-of-system-failure/article1609891/
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AnonymousSunday, 20 June, 2010
Dave

Thanks so much for the info you provide. For those of us without a background in economic matters, trying to understand it all is at times overwhelming and you make some of it easier to comprehend. For that, I am extremely grateful.
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Add comment

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.