Yesterday the USD was up 7 days in a row and is at the bottom of a resistance level between 84.5 and 85.5. US Treasury notes and bonds are in a similar situation in terms of resistance levels. The notes have drifted to the right over the last 2 weeks to their uptrend line. If the notes break the line, yields and interest rates look to go up. Not good for the US economy (looks to be slowing), US stock market and US real estate.
Gold and silver are down to their support levels established 5-6 weeks ago when I said gold and silver had likely bottomed. I still think in those terms.
2 days ago gold went down but the HUI index (mostly gold/silver non-hedged mining companies) held its level. Yesterday gold went down again and the HUI index moved up. I like that.
Yesterday the Fed's board and Greenspan pulled a Monty Python act when they announced about an hour and a half later that they forgot to put back in a sentence from last months message for this months message about the FOMC interest rate meeting. And that the other sentence that got left out should stay out. This is the moronic bunch that is trying to run the US economy Communist (central planning) style. They have already screwed up the US economy. The affects just haven't been fully felt yet. Most in the world, particularly Americans, did not learn a single thing from the internal implosion of the former USSR.
The US is more like a shell of itself:
"Unconstitutional or not, the individual income tax (or any other tax, for that matter) will not by itself drive this country's economy to collapse tomorrow, next month, or next year. But the monetary and banking systems will--if not tomorrow, surely someday soon. And the resulting chaos will offer the occasion and excuse for the General Government to impose a police-state tyranny beside which the worst excesses of today's tax Gestapo will resemble Jeffersonian libertarianism."
- April 9, 2005, Dr. Edwin Vieira, Jr., Ph.D., J.D., author of Pieces of Eight and coauthor of Cra$hmaker with Trader Vic