Watch the dollar

Down 1/4 a percent today, that means the $1 of the rise in oil today is attributed to dollar weakness. Gold won’t be the only thing rising if the dollar gets into trouble and that, more than bullishness about gold, may be what China is signaling.

They are long term planners and while they don’t want to see a dollar collapse due to their large holdings, they will stop using it as much as possible. They also will look at which will be more painful; ending the use of the dollar now, or waiting and having even more when it collapses.

They have cut six deals, I know of, that involve not using the dollar in trade deals. Other nations are doing similar things. The “test” of the SDR’s to see if it will be accepted as a global currency is another thing we need to watch.

The FED is doing all it can to destroy the value of the dollar whether they intend to or not and China and the rest of the world knows it.

Any bullish news for gold is bad news for the U.S. or any nation with a currency being devalued. We are in a depression that will last years in all likelihood. Total debt is just too high to get out of this in the normal time it takes for a recession to end.

Insider selling is going on in this rally. Other signs indicate that this is just a bear market rally. Tax revenues are falling. Even if things appear to be working, the Government is attempting to borrow $2 trillion and more when there is only $600 billion available, based on history, to lend us. Governments are competing with us for loans and nations that can lend need to spend more on their own stimulus packages instead of lending the money.

Related Posts:

• 10% gain for the past two weeks is not enough?
• Because of our debt, we could end up left out of the recovery.
• How Fast is U.S Debt Increasing
• Which country has the world’s largest negative account balance?
• Here is another thing about bank closures:

Leave a comment