Dick Cheney's slip of the lip and the REAL U.S. Dollar policy.
Question:
What do the following have in common?
Virtual - Reality
Tragic - Comedy
Open - Secret
Minor - Crisis
Answer:
Two things. First, they can all be used to describe
the state of the U.S. Dollar, and secondly, they like
"strong dollar" policy, are all oxymorons.
And speaking of morons...
Did you see the Larry Kudlow interview of Cheney
on CNBC last Friday night?
No it was not his comments on Iraq, or Iran. And
it wasn't his comments about Oil prices, or even
about finding Cousin Barrack in the woodpile...
It was this exchange:
KUDLOW: "Are you worried that the dollar has fallen
too low? I mean, you can hardly get through a day in
the financial news without reading about the dollar
setting a new low. Does that bother you? I mean,
when I worked for President Reagan many years ago,
he used to say a great country needed a strong and
reliable currency. This dollar story bother you?"
V.P. CHENEY: "...we think that key is that it should
be allowed to adjust based on market forces out there
and that's exactly what's happening."
Well let's take a look at that "adjustment"
and those "market forces"...
He was right about - "and that's exactly what's happening."
Ever since the IMF leaked their talking points about
the need for a weaker US Dollar... the "whisper number"
has been USD 72.
Throw in a couple more Fed rate cuts with $100 Oil,
and the HUI gold stock index looks like it's got
another 100 points +/- of upside potential still
remaining.
They key for the Dollar will be if "they" can continue
to manage the descent... or, if the market takes over,
and turns the faux "strong dollar policy" into nothing
more than just another -- oxymoron.
Oil is an important key here for gold.
Gold has lagged the move in oil by about 10%.
If Oil doesn't roll over, and Gold can close
that gap...a 10% move in gold will equal a
20-30% move in the HUI index and take us
to the HUI 520ish range:
How about $100 Oil, $1,000 Gold and HUI 520?
From Dick Cheney's lips...to Gold's ears...and our wallets.
S.O.T.B. |
