Dan Walker

Gold Strikes Record Levels in Most Currencies

Every time I see these type comments, the dow bounces back. No, I do not think this time it is anything more than a retrace, and I most certainly do not disagree with any of the gold fans; in fact, I have a bit more than a troy pound stashed. I simply think you guys are early to the party. This will be a long hard charge down the hill, and we are just coming up the second crest. You will be handsomely rewarded next year. If you do get rewarded before then we are much further up the big muddy than anyone wants to think. The central banks have the supply and the moneyed interests to insure that it does not happen this year. When the moneyed interests run out of cash next year is when you will see the fireworks as well as the attendant rewards.

OPEC's Move to Devalue the Euro

The dollar will be forced up by the market if not by OPEC. The Chinese equity market has already dropped over 50% from last year's high and as another article here points out, it has another 1000 points to go before it hits any support. Inflation there was estimated at 7% and 8% per annum respectively for the last two months which makes them among the better off in Asia inflation-wise. Sooner or later the smart money will realize that all this 'increased Asian demand' will be another 5 years down the pike and short oil until it overshoots where it 'should be trading' by $20-40/bbl. That gets us to $35-55/bbl, which, as our friend who posted this article points out, will force the dollar higher by default and with no effort on our DC idiots' part. Let's just hope they don't do something to screw it up.