Lonestar1

Why Are Gold and the Dollar Running Together?

We have had this virtual economy for so long that runs the real risk of virtualizing our currency. The Fed actions have corrupted our sense of wealth. Getting into gold is to get back some sense of purity.


On Feb 01 03:34 PM PrudentMan, CFA wrote:

> If gold is a hedge against inflation it should be selling around
> $4,000.00 an ounce. Admittedly, I don't have a clue as to why people
> buy gold as an investment any more that Tulip Bulbs.

The End of Gold, Part Two

Although this is a little too harsh, but it's true the article does not add anything new to the discussion on gold.

Both deflation & inflation threats are real. It is economic destruction vs money printing. We are living in a warped world, in which actions of central banks are causing great confusion to our sense of wealth while asset prices are destroyed.

What else would we want to hold if it is not tangible? Gold is tangible. It is real money, pure without stains.


On Feb 01 12:10 PM aw4000 wrote:

> The author needs his head examined!

U.S. Dollar Strength and Implications for Gold

There is only one one question:

why when the Fed fails, gold price has to go down?

This is only a assumption.

It's Good to Be the World's Reserve Currency

There will be increasing pressure to put $ under international supervision if US wants to continue to enjoy the reserve currency status. It is unlikely US would budge to such pressure unless all countries on the Eurasia continent speaks with one voice. The US strategy, of course, is to prevent such possibility. US presence in central Asia; insistence on deploying missile defense shield in Eastern Europe, are all for this purpose. The result of this crisis can not be pretty. It may result in a collapse of global trading system and rise of protectionism. The sharp decline of trading volume + an uneasy gyration about the $ are pointing to that direction

President Obama Can't Save the Dollar from Its Fate

Beautiful speech is not a substitute for concrete steps and a clear road map. Fair to say that Obama have done something concrete, though what he really needs to show the country is his road map to recovery and convince the people it will work.

So far, it appears that young people have bought the hope, but the wise men are not convinced if he even has a map to recovery.

Which Black Swan Will Pop the Treasury Bubble?

Dumping of Treasuries by Foreign central banks is not a pure economic event. One should look for clues in strategic arm twisting among the world's largest geopolitical power brokers.

On the same basis, doesn't it make everybody wonder why Tokyo-Mitsubish (?) executed its $9 billion investment in Morgan Stanley for a 20% stake while they can withdraw without any penalty? More ironic is that the same Japanese bank raised capital for its own capital adequacy..