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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?


To: Clappy who wrote (28488)2/21/2003 12:19:31 AM
From: Jim Willie CB  Respond to of 36161
 
bear in mind that your doubts on gold come on a big day

Dec trade gap was $44.2 billion
that is $7-9 billion more than saw last early summer
when the dollar was 10% higher

the clowny buck now has pretty much finished breathing all the air it will for a while over 100 parity
maybe another couple days, or another couple weeks
or another couple hours

quotes.ino.com

doubters of gold sometimes spout endlessly about how it is all about the dollar
other doubters of gold admit that the dollar's fundamentals are lousy, but name another currency that will advance against it
(that argument failed last autumn and winter -- see EURO)

I suspect we will see a round robin of other currencies taking the lead spot in advancing versus the wounded dollar
next up is the JapYen, which will see Repatriation push ending March 31st

this gold bull market is to receive a jet assist from the declining dollar
then it takes on a life of its own
imagine a rocket with the big first stage powered by dollar
then the second stage powered by Chinese yuan effect of upward revaluation
then the third stage powered by a return of US inflation, from import prices, Fed monetization backfires, and continued debt implosion, a truly nasty combustible mixture

2nd and 3rd stages might be the other way around
/ jim