HeliBen

Gold/Dollar Ratio Goes Parabolic

Terrible "point". Our support base in the 70s with manufactoring, debt levels, spending, etc, etc was much stronger, providing a floor for the dollar. We could raise rates to 20% and largely survive. Raising them to 5.25% is bringing down the banking structure today and the Fed is quickly backtracking. Now we have negative real rates.

I am a holder of PMs and their stocks. I will sell them when I see a reason to be pro-dollar versus gold. So far I only see reasons to stock up on more gold. Should things get really hairy our dollar will collapse just like the Russian Ruble in the late 90s. Given that they are a very mineral rich country with something real to offer and sell to the world, I see no reason why the US could not possibly, just possibly suffer the same fate. Our main export of the dollar is just not going to cut it for very long.