Gold Breakout Higher, Oil Breakout Higher: Watch the Dollar Now
February 27th, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Gold and oil are, right now, setting fresh all time highs. How about the dollar?
While EUR/USD has hit an all time high at 1.5047, the European Central Bank has probably tried to calm things down a bit, looking at the last several 15 minute candles. That’s just a guess. This is happening right now so there’s no official word. They’ve managed to knock it back to just under 1.5000.
The U.S. Dollar Index is the one nut that hasn’t cracked yet, for those of us who have been profiting from this situation.
74.50.
How many times have I said it?
Well, we’ve got a daily low of, are you ready, 74.50.
The next 24-48 hours represent a strategic make or break point.
I’m keeping my allocations the same:
Gold (Bought a little more on the recent dip into the $920s.)
New Zealand Dollar
Swiss Franc
The only US$ I’m holding is what I consider to be “petty cash” for reckless speculation with options. I have no options bets laid on now. I am keeping one eye on DBA. I’ll look to re-enter that one on any good pullback.
Now, what could They do to throw a wet blanket onto this dollar bear party?
While you, me and just about everyone let out a collective * pfft * with all the IMF gold sale talk, They will, I repeat, WILL manage to frighten some people by dumping a few tons into the spot market.
That’s nice.
I’m not selling.
Let it rip, guys. There’s far more confetti out there than gold.
The US has been loaded up with as much debt as it can possibly hold and the carcass has been divided up amongst the wolves.
China and Japan get the treasury debt.
The Middle East gangs get the Citibank and credit card debt.
And Russia just got approved to take over the Freddie Mac homeowner debt.
That party is over. The lights are being turned off (Hi Florida!)and no one really cares anymore what happens to the USD. US citizens are too stupid to understand what is happening to them, the Congress has all their money offshore anyway, so who is left to care?
The new superpowers will trade oil in Euros, Rubles, Yen, Yuan, whatever, anything but the USD.
JPMorgan has the lock on Chinese Debt and this is the new golden goose. The ultimate trophy for the next hundred years.
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSPEK8310320080227
“JPMorgan Chase Bank (China) Co Ltd (JPM.N: Quote, Profile, Research) has been appointed by the Ministry of Finance as a primary dealer in Chinese government bonds, making it the first U.S. bank to be allowed to underwrite domestic government debt. ”
I used to think at least the US still has Boeing, but then I read a few weeks ago that, while still assembled in the Pacific Northwest, all their aircraft parts are made…in China.
Now the international bankers who control JPMorgan just need to get China to start spending (debt) like crazy on military adventures.
First maybe they will light a nuke in Seattle to take out the last remaining Boeing plant (hey, maybe we can rebuilt it in Guangdong cheaper!) and get the Canadian and US Military to join together, light a nuke in Arizona to get the US and Mexican military together and give John Insane his own 9/11 to ride to victory and form the NAU and Amero. Then light off a few more to preserve the precious oil reserves under a nice layer of glass without pesky camels walking all over it.
Then we can have the unlimited fun and profitable wars between their 3 new toys, the EU, NAU and ASEAN, with the whole thing controlled from the Temple on the Mount surrounded by glassed over oil reserves.
Herd all the peasants into cities with digital money and unlimited trinkets and war video game training for fun. All this for the low, low price of only 1 billion lives! To infinity and beyond!
The Merck Fund is looking really good right now, so is the Central Fund of Canada.
Other than taking possession of gold and silver, there are few options.
The dollar is less than confetti now, it IS TOILET PAPER.