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To: Secret_Agent_Man who wrote (396197)	10/20/2009 10:07:35 PM
From: Box-By-The-Riviera™	2 Recommendations Respond to of 436258

i like this esplanation. from lewis today. The proximate cause for that dollar bounce appeared to be the fact that the “race to debase” went into high gear today. First, Brazil imposed a tax on foreign investment in order to try and stem the real’s climb. Second, the Bank of Canada warned that the strong Loonie could offset the favorable economic developments since July. Third, the EU whined about the strong euro and complained that the US was “flooding the world” with dollars and creating dollar weakness that was “unbearable.” So, basically we’re starting to see the dollar’s weakness begin to turn from a global positive to more of a concern, or to put it differently, the “dollar crisis” may be being slowly recognized for what it is. Unfortunately, much like the 2008 collapse of the US financial system, there’s not a whole lot that anyone can do about that dollar weakness. And as other central banks are eventually forced to try to intervene and print their own currency or raise capital barriers (like Brazil), it’s going to favor gold more and more in ALL currencies regardless of what the dollar is doing (more on that below).