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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: gregor_us who wrote (26916)	2/6/2010 10:16:18 AM
From: TH	Respond to of 71409

gregor, Our playbook must be the same edition <g> <Did I spot money flowing first into the larger cap names, before the Juniors?> Yes, and I was pleased too, as my buy-in strategy after a dump is always to load majors first and juniors after they start to perform. My positions are still light, but all majors with exceptional volume and gain. 1044 might be the hard floor for a while, thanks to India snatching up the bullion before the Chinese. Nothing like competition between central banks to help set a floor. I'll be adding next week all week long. GT TH

To: gregor_us who wrote (26916)	2/6/2010 4:46:07 PM
From: LTK007	1 Recommendation Read Replies (2) \| Respond to of 71409

i never disagree with your FA logic, it is and has been wholely sound, but TA wise there must be a follow up next week top confirm what amounts to a bounce in the entire market in the last 60 minutes--all ships went up after SPX hit its 200ema. i am ready to go into TBT , but i am bit suspect over the wave of euphoria on the bounce in the miners.i hope for those running in,that I AM WRONG, i mean that! But i just can't not join the choir right now. So much depends on overall market direction, miners have been for sometime been plunging when market is going down and rising hard when market goes up---the Beta on the miners has been extreme in BOTH up and down action in the overall market. That GDX moved from 39.48 to 42.40 in the last 60 min is exciting, but so did everything else do this---

To: gregor_us who wrote (26916)	2/7/2010 11:35:26 AM
From: LTK007	Respond to of 71409

'The risk is really not to own any precious metals at all,' says Marc Faber Source: BI-ME , Author: BI-ME staff Posted: Fri February 5, 2010 7:24 pm ( i note i own no physical PMs, and never will, it is a philosophical point with me, as i just don't care--it is all que sera, sera with me.We physically all die.So what is the big deal? i just play the MinersMax) bi-me.com INTERNATIONAL. Marc Faber the Swiss fund manager and Gloom Boom & Doom editor said the US will be forced to massively monetize debts and reduce it through inflation. Writing in the latest edition of the Gloom Boom & Doom report, Faber said the US will face difficult decisions soon. It could default on its debt obligations or monetize debt and reduce it through massive inflation. “In my opinion,” he says, “additional massive monetization of debts is the most likely outcome”. He however points out that “frantic monetization” is what caused the current banking problems. Faber sees big banks as 'dangerous' by-products of the Fed's expansionist monetary policies, deeply embedded in a bull market culture of entitlement and greed. The famed investor has been repeating his long-held views that the Federal Reserve’s expansionist monetary policies are the causes of the financial crisis by creating a large amount of leverage in the system and creating a credit-addicted economy. Faber believes that at some stage, about 35%-50% of tax revenues will be used just to cover the interest payments on the US government debt. He says this is unsustainable and at that point the the Fed will be really forced to print more money. “Maximum within 10 years time more than 35% of tax revenues will have to be used to pay the interest on the government debt and then you are in trouble – because then there will be not enough money out of the budget to pay for other stuff. I’m convinced the US government will go bankrupt, but not tomorrow. And before they go bankrupt, they’ll print money, and then you get high inflation rates, you have a depression and eventually they’ll go to war.” How can we come back to our senses? Faber says we need "to return to a rational monetary policy based on sensible interest rates, and an end to frantic monetization of federal debt and a stable exchange value for the dollar.” Gold bull It will be more difficult to make money in 2010 as the markets become more volatile, according to Faber. “I think 2010 will be more of a year when not to lose any money will be very important,” said Faber. “I am a little more cautious in general.” Regarding commodities, and precious metals specifically, Faber says "the risk is really not to own any precious metals at all." Faber remains a bull on gold, and again confirmed it as a place of safety and a haven in ongoing turbulent times. He acknowledges the possibility of a gold correction, depending on the liquidity in the markets, and says it could drop as low as US$950-US$1,050 an ounce. That would only be a temporary event and would be the time to load up on more gold if that's the circumstances. Choppy equities As far as equities go for 2010, Faber believes they will perform in an up and down manner throughout the year. In the near term, should stock markets – following a brief rebound in the first few days of February – decline into the second half of February, I would buy some stocks for a rebound. And if stocks now fail to decline and continue to rally right away I would use strength to lighten up positions. Dollar rally won't last While the dollar may rebound in the short term because it's been oversold, a rally won't last because the US will be forced to print more money to pay its debt, Faber recently said.

To: gregor_us who wrote (26916)	2/8/2010 2:09:43 PM
From: Real Man	Read Replies (1) \| Respond to of 71409

"there is no central bank on the moon to take on the planet's liabilities" Since Obama killed NASA Constellation to fight the budget deficit problems, we can't find out for sure. <G>