Phil > Is it consistent with the dollar's advance?
I presume so but I would think, more correctly, consistent with speculation about the dollar's advance. It's all about derivatives (futures and options) trading -- few are buying actual gold, few are buying Euros, few are buying dollars and, if they are, it's only to gamble. All the world is a casino.
> Funny how in a couple of weeks the landscape changes. Or is it because of the narrow focus, but the big picture remains unchanged?
Yes, same story, different day. Now it's dollar shorts buying in, gold longs selling. Three months time, or maybe sooner, they change positions again.
> Fundamentally nothing has changed. And more of the same is promised.
Yes, God's in his Heaven, alright with the world.
> As for the US, we will have to wait and see if they are willing to scale back their spending and borrowing.
Come on, they are spending as we speak. Have you forgotten the tsunami? What a wonderful excuse to print, spend and incur Indonesian, Thai and Indian indebtedness to the US. And who would have believed that US armed forces would be welcomed into these countries like guardian angels? But they are.
> The strengthening of the US dollar will diminish calls for the ECB to increase liquidity (lower the interest rates), for China to re-value their currency, and assures a continuation of the present trade deficit. It is hard to imagine that this is the intended result of a strong dollar, but it is.
It is. But as long as the currency see-saw is busy going up and down, everything is fine in the playground.
> Meantime, Japan has reassured the US and the world it will continue the game forever if necessary.
Forever and ever, Amen.
> But who knows how the picture will look tomorrow.
I do. More debt. More lies. W going from strength to strength. Neocons running the whole show. Rich getting richer and poor getting poorer. US printing like there's no tomorrow. Experts raving about the US debt heralding the end of the world. Goldbugs crying about gold not getting through $500 an ounce. Goldbug messiahs preaching about gold price suppression. New Palestinian Prime Minister assassinated. Israel still talking about its commitment to peace. US still emphasising its unflinching commitment to Israel. |
