U.S. DOLLAR INDEX CROSSES BELOW 80
July 24th, 2007WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Latest is USDX down .23 to 79.99. Will it get a foot hold, or slip off the cliff??? I thought we would see a bounce off of 80; at least a feeble one. If it’s going to happen, this is the make or break moment.
Gold hasn’t caught up yet. This USDX action, without upside follow through on the gold, should, and I repeat should, act like compressing a spring. It could get weird. If gold gaps up, traders will want to be aware of the major overhead resistance at around 714.25 (weekly high set back in 2006) going forward.
The New Zealand Dollar is gapping to new highs. Up nearly a full cent today at around 81 now! I would expect the government to announce emergency measures at any moment. The break above 80 put blood in the water, and now it’s a feeding frenzy. Panic buying is the order of the day; logic has gone out the window. I have no idea what’s going to happen here, but it feels like a blow off top, but who knows…
Best of luck to all who have placed their bets. (If you use any national currency, you’re a gambler, whether you know it or not.)
It’s kind of funny working for a large company in NZ that works all of its forecasts on perpetual growth. Stick a wet finger in the air and pick a sum. No-one seems to see that exponential growth is not maintainable, and even if it was, no-one seems to think that things won’t hit a wall as they have in previous times (engineered great depression or not). So,even using historical economic examples, which are all manufactured anyway, it doesn’t enter their thinking as a possibility.
Same goes for the dollar situation. Sometimes there isn’t anything you can do to alleviate an issue. “But there must be,” they say.
Nope.
“No-one seems to see that exponential growth is not maintainable, and even if it was, no-one seems to think that things won’t hit a wall as they have in previous times (engineered great depression or not).”
k,
Exponential growth is the normal field, easily maintained, in computerised circuits. And transferring Real situations to Virtualisation Controls allows for exponential growth of ITs Controls. Perfect for a “switched on” company and in such a case, size really doesn’t matter. 🙂
Perpetual growth? Perpetual inflation that sucks up the surplus.
Improvements in science result in improvements to technology, which improves productivity, progressively.
What has happened is we are accumulating excess wealth horders, who not only take up excess, but create stagnant piles of non circulating wealth.
Gold can mined/or aquired from many locations worldwide, but has a strange check to it’s value; It isn’t profitable to flood the market with gold, as value can drop below mining/aquisition cost. When value reaches a certain point, mining starts up and increases supply. Improvements in mining tech have increased the productivity here too.
Most people with gold are going to cash it out at some point (and you take a spot loss, both in buying and selling it). If the economic situation gets bad enough, selling gold can become difficult. It can’t be eaten and the worldwide demand for it’s uses are exponentially below supply.
A far better investment would be barrels of whiskey (even bottles appreciate nicely) as the age value increases at a much higher and more dependable rate than gold ever has. It is very easy to barter it for other commodities, and you can always drink it yourself.