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Watching the USD Drop? Here's What You Should Really Be Watching

In a leveraged capitalism dept is hardly a measure of healthy economy. The main issue everyone is forgetting is the over 600 Trillion of outstanding derivatives and Credit default swaps. The unregulated nature of these toxic instruments were about to collapse the entire world financial system.

The total annual world out put is only 50 trillion...The few more trillion will not save us from the financial tsunami…...Let say we can value those credit swaps outstanding priced at $.50 on a dollar...That would be about at least 250 Trillion that needs to be bailed out....now the question is should we let the Zombie banks to collapse or print our way out of this mess...the consequence of the actions made by the FED are great and many generation has to pay for it…the only way out is to collapse the dollar….to reduce the United states dept to China, Japan, Europe, and Russia….. Government only option is to crash the dollar eventually as flush the system and adop Gold as the world Reserve currency.......

Is Something Big About to Happen?

Why anyone is surprised on the one sided direction of the market. The market has not made any sense since the March 9 low.

The more bad news the higher the market goes. By now you should realize that the Central bankers are in control with the most amount of free money ever.

The FED is in charge of making sure we would not fall into the deflation spiral like Japan.

The only way to deal with over 600 Trillion (with a "T") outstanding derivatives and CDS around the world is to just pretend it did not happen and try to inflate our way to borrow another 10 years or so time.

We are in the Dollar Carry Trade era. The exworld resurve currency is being used as an instrument to create more bubbles around the world with funny money..... Stick with Gold for a long run as an insurance ......

The Fed: Sending Investors to the Slaughter?

What is happening has nothing to do with politics and socialism....It is the central bankers that rule and they are the only means of money flow in the capitalistic societies......Central banks around the world with the help of Federal Reserve will do anything to prevent the total halt to the financial system.

The government is at the mercy of central bankers with their lobbyist hard at work to implement what ever means to save the world economy from collapsing due to the unregulated CDS of over 500 trillions..... No single government or country could handle the unknown value of the outstanding derivative...They will create more bubbles and hard at work to inflate their way out of this mess even if it is temporary.

The ultimate goal is to devalue the dollar for a while and create new bubbles by using the dollar as a carry trade.

The Fed: Sending Investors to the Slaughter?

It is too late for the market to make any sense.....The situation is so bad, that there is only a one way bet.......The FED will do anything to inflate their way out of this mess.......

The main problem remains to be the jobs, and housing......banks can not survive without housing and zero interest rates, ........The dollar is being used as a carry trade (borrow dollar at low interest rate.....And invest it in other countries or commodities for higher return).

This means there are more bubbles to develop around the world........2010 will be much worst than 2009.........Expect to have lower home prices and get ready for crash of commercial loans ....

The only safe haven is Gold (in a long run) and any hard asset

The Fed: Sending Investors to the Slaughter?

There is no secret that the FED bailed out the gangster Central Bankers and indirectly raised the equities for no fundamental reason.

Once this scenario was established, the smart investors are betting for the dollar to go lower...In this case the entire equity market is on the auto pilot to go higher due to the future inflation/reflation.

Do not be surprised if the market keep going higher, in fact all equities should double or triple in few years......Look for Gold prices to confirm the direction of the market.....

As long as Dollar is down, Gold is going higher, there is an ample room for equities to go much higher.....

Gold Soars to New Highs

The purchase was made bertween Oct9-30 at an average price of $1045.

Although India is the world's biggest consumer of gold, primarily in the form of jewellery and investment among its billion-plus people, its central bank had given few indications of being a front-runner in the move to diversify into bullion.

The proportion of gold as part of its total foreign reserves had fallen over the past decades, officials said.

India's foreign exchange reserves held at the central bank totalled $285.5 billion on Oct. 23, of which gold comprised just over $10 billion. The latest purchase will lift its share of gold holdings from near 4% to about 6%, much less than most of the developed world but four times China's share.

This is a rare time to buy gold at thease levels....the road is clear for much higher prices in a near future.

Gold Stocks: The Ultimate Options Strategy

"If the Fed starts raising rates and the dollar rallies, gold and gold stocks will fall again".

Fed would not dare to raise the rates for a foreseeable future. There is no benefit in rising dollar for the current state of US economy. Gold has nothing to do with inflation or deflation either.

Gold will only rise when the US Economy is in danger or it is unstable. Gold is perceived as the only world reserve currency against dollar. Investors are using gold as an insurance against instability of world economy, especially US.

Gold Entering Traditionally Strong Period of November and December

In case you are wondering, India has nothing to do with the price of Gold. The recent (last 5 years) Gold price increases are based on unstable US economy and endless printing of the dollar due to corruption at core of the corrupted/unregulated financial system.

George Soros: The Guru Outlook

During the last 30 years America has relied on creating wealth through leverage. People were mislead thought borrowing more so they can create more wealth (i.e. Creating the internet and housing bubble......).
Homes were used as ATM machines and the financial system cashed in and even become greedy to a point of destroying itself and taking down the entire population with it.

The unregulated era of Alan Greenspan empire powered the greedy in the financial system. The CDS market created an environment of huge profits for some at the cost of average American Tax payer.

Helicopter Ben Bernanke or Geithner are no different.

The united state must remain the innovator and provide the means for people to become wealthy through innovation. There should be regulations that would not allow very few manipulators (Like Soros or Warren Buffet, or Goldman Sachs) take the rest of the population to the cleaners.

Until the rules changes, we are headed for a much bigger worldwide financial disaster.....Preserve your wealth through Gold, and any other hard asset...Do not follow or become the victim of the wall street....

Here's Why Asia Must Eventually Ditch the Dollar

Gold has been and will be ultimate answer to corrupted European and American financial system. There is no other safer currency than dollar..If there is suppose to be one, it is Gold.

The last thing china wants is to strengthen its currency to loose it share of cheap export! Euro has little value based on uncontrolled credit system.

Central bankers will like to remain in power and will take any measure to block the Gold...But eventually this house of card will crumble.

Eldorado Gold: A Cost-Effective Way to Move into Gold

Why not buy all of the major mine players through GDX to better control the risk?

Gold's Real Inflation Adjusted High Is $7,150/oz

Unless you are a large investor to actually buy large quantity of physical gold purchase, the paper Gold (ETF) or GDX is a safe bet as long as you don't bet your farm on it.

It would take few years to reach $2000, $3000 or $7000 estimated levels, meanwhile enjoy the ride!

Gold's Real Inflation Adjusted High Is $7,150/oz

Is your gold really there?

On average there is more than one ownership claim on each gold bar conforming to London Good Delivery (LGD) standard on the "pool" of gold which acts as liquidity for the massive OTC gold trade based in London. Essentially, the market operates on a fractional reserve basis, but if a sufficient number of market participants become concerned about this and there is a stampede to take delivery of physical bullion, there is a risk of market failure.

Such a process could be delayed by central banks lending gold to the market, although this would likely be obvious by a spike in gold lease rates, or by a much higher gold price in order to encourage holders to sell bullion. In this scenario, the gold price could SOAR at any time and the gold market, which is subject to little regulation, is basically an accident waiting to happen; "

Or:

"There is FAR more gold bullion held in private hands than is acknowledged by current industry estimates. It is the large amount of additional gold on top of known gold stocks which provides sufficient liquidity to support the high volumes traded through London.

The most likely source for this gold dates back to the Japanese conquest of Asia from 1894-1945 when Japan is alleged to have looted the gold and valuables of 12 nations - it is best known as the story of Yamashita's Gold. If true, analysis shows that particularly heavy volumes of this gold may have been laundered into the London market during 1986-90 and the mid/late 1990s. In this scenario, the continued evolution of the gold bull market could be more protracted, if supplies of this gold continue to enter the market periodically."

Bullish Divergence in the Dollar

If you can not beat them you have to join them.

The magic of the recent rally will continue because there is no other place to park your money!

This is a madness......until the Credit default Swaps are regulated and financial system is overhauled the dollar will continue to go down.

There are many toxic CDS and derivatives out there....the plan is to make them to have some kind of value if at all possible by the central bankers. If the central bankers succeed, the market may go back to normal with new financial regulations......but most know it is too late and the dollar continues to collapse......we may have a up and down market, but the equity direction is only up until we correct the financial system.

S&P 1100: The Market's Next Line in the Sand

If you can not beat them you have to join them..The magic of the recent rally will continue because there is no other place to park your money!

This is a madness......until the Credit default Swaps are regulated and financial system is overhauled the dollar will continue to go down. There are many toxic CDS and derivatives out there....the plan is to make them to have some kind of value if at all possible by the central bankers. If the central bankers succeed the market may go back to normal with new financial regulations......but most know it is too late and the dollar continues to collapse