GOLD BREAKOUT HIGHER
September 28th, 2007WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
There it is.
The U.S. dollar is getting slammed again. USDX stands at 78 even.
I’m watching it in realtime and we’ve got EUR/USD printing above 1.42 now. This must be causing a few hairs to be standing on end in and around the power centers of Europe.
Gold is up and out of the previous short term range. Next hurdle: $750.
Remember the last magic number I mentioned? $721 on the gold. Well, that magic number for oil is that $83.90. We’re at $83.60 right now.
The dollar collapse is whipping up a perfect storm in the commodities.
Via: Marketwatch:
Gold futures rose sharply early Friday, buoyed by the dollar’s plunge to a new all-time low against the euro. Gold for December delivery surged $8.60, or 1.1%, at $748.50 an ounce on the New York Mercantile Exchange. The euro hit a fresh all-time high of $1.4197 against the dollar. The common currency was last trading up 0.2% at $1.4182. “Gold remains underpinned by robust oil prices and a renewed rise in the euro against the dollar, which both increase the appeal of the precious metal as a hedge against inflation,” said analysts at Action Economics.
I’ve read on the Internet somewhere (maybe even one of the comments here, it gets so hard to keep track of all the scary news and rumors I read these days) that the Fed might institute yet another rate cut. I’m starting to think they’re deliberately gutting the US Dollar.
yikes…gold just broke 751.30
I think they are gutting it, to make way for the all new AMERO!! (Tah Dah!)
Of course they are going to gut the dollar. It is the only way they will justify a united currency for the whole of North America, and usher in the North American Union. I pity people who live in the US.
Well, I sure am glad I gave my daughters, who are attending college in a nearby city, their evacuation instructions.
Sure, things might not unravel during the current school year. But better safe than sorry.
If the news gets much more disturbing, I’ll start nagging them to keep a full tank of gas at all times.
While the value of the dollar isn’t the only factor involved, it seems to be the only factor that isn’t kept carefully under wraps. I.e., we don’t know if or when our ACH deposits will fail to arrive, or fail to be credited (because either our bank is insolvent or our employer’s bank is insolvent).
I wish there were some guru out there who could say with certainty: When the dollar drops below 80, make definite evacuation plans, if you live in the city; when it drops to 70, keep a full tank of gas; when it drops to 50 or 60, remove yourself to some location where the grocery stores aren’t on fire; when it drops to 40 or less, retire to some remote location and take your short-wave radio with you.
Please don’t take the above suggestions too seriously. It ain’t that easy.
We are in uncharted territory.
yeah, i’ve heard the same thing, scheduled for the 8th, supposedly. google news has mentions, but nothing detailed:
http://news.google.com/news?q=fed+rate+cut+october
i suppose rate cuts = inflation, and that’s part of why commodities are rising, but isn’t this rise in gold mostly driven by market uncertainty?
if so, when does gold dip back down?? i’m still waiting for it, but it feels like the “good news” of the rate cut wasn’t really taken seriously by anyone but stock mavens.
can anybody comment on whether gold is rising on fear, or for more mundane reasons (like interest rates), or is this a false distinction by now? i suppose there’s no way to tell.
The Amero, huh? I can just see it: denominated in units of $6.66, an inverted pentacle printed on the back, printed in black and red ink, and instead of “In God We Trust”, “Booga, Zilga, Grelzen, Argh! Mwahahahaha!”
Watched the PBS Market News tonight. D’ya think they even mentioned the dollar? NO
What kind of bunker are these people living in? The NYSE is fine so let’s just go on as if there is nothing else to consider?
No word of the dollar crashing in 2 local newspapers. I used to have a subscription to the Wall Street Journal, but when their editorial page published an article from Richard Perle about how good the Iraq war was, I left the building. Argh. Yes, I’d say have a plan. Dollars are turning into doughnuts. Big holes in the middle.
Anyways, I have a Prius – and I fill it up when I have less than half a tank of gas. You should also (and I should take my own advice) buy at least one five gallon container for gasoline.
I don’t have to be an astrologer to predict that there is deep, thigh high doo doo coming to the US economy nearest each and every U.S. citizen re gasoline and the dollar.
You are fortunate to have a family who listens to your common sense.
Is it the start of a real meltdown or is there still hope that this economy will drag on for a couple more months. I think a new rate cut would really make Weimar happen, combine it with a worldwide dumping of the dollar reserves.. god help the u.$.a.
Ben is sure that the FED caused the recession in the 30s because it didn’t cut rates quick enough, so you know for sure what’s coming next!
I can’t imagine, how this comedy/tragedy shall end, everything is possible when people/leaders come into a desperate situation. Lets pray!
Eileen–
I’ve been pathological about tracking the dangers to the dollar for a couple of years. I think it was a couple of years ago–I’ve kind of lost track–that there was widespread fear of an imminent dollar collapse.
At that time (whenever it was–you can probably easily Google the many articles), what was apparently a looming crisis was smoothed over.
Since then, there have been fairly frequent articles fretting about the rapid increase in the money supply–and the decision to cease making the M3 public.
More recently–articles expressing concern about what would happen if the dollar dropped below 80.
Now that the dollar really has dropped below 80 and keeps trending downward–crashing through historic support levels–there has been something of a deafening silence.
shephurt–
I don’t think anyone can foretell a time-frame on a real meltdown. But it seems to me that it’s in the interests of the PTB to drag it out as much as possible, and to orchestrate a meltdown so that it comes at the right time–for them.
Personally, I don’t look for real trouble until 2008–at which point I would look for things to get alarming. Summer and fall of ’08–I think–will mark the beginnings of things really starting to get ugly.
Why do I say this? Well–apart from the coming presidential election–hell if I know. I just know that the PTB needs lead time to spin things–you know, implying that terrorists are trying to get people to riot in the cities. That’s simplistic–even simple-minded–example, but you see what I mean. The media needs time to spin things so that people will embrace martial law and a police state, because of the “emergency.”