Since 1913 the dollar has not gone below the major support level of 80-81 on the index until 2007. Now that level is resistance. The dollar, being up against it recently, looks to be backing down from it.
Since the US dollar has probably topped, gold has probably bottomed since it is down to it trend line and 20 month moving average, not to mention the horrendously awful financial news of major US financial houses, the pillars of the US financial system.
>Wall Street Banks Fight for Life
>By Francesco Guerrera, Krishna Guha, and Greg Farrell
>Financial Times, London
>Monday, September 15, 2008
>The Federal Reserve announced a dramatic expansion of its lending
>operations, saying it would in future accept all assets including
>equities and whole loans as collateral for loans under the primary
>dealer credit facility.
>It widened the set of assets eligible as collateral for loans of
>Treasuries to include all investment grade paper, and raised the size of
>these Treasury loans to $200 billion.
>The Fed also suspended rules that prohibit banks from using deposits to
>fund their investment banking subsidiaries.
Quick! Virtually anything goes now. Train you dog to write I.O.U.s. Then tell your dog to ask the Treasury/Fed if they will take them as collateral for a loan of US Treasuries.
This is grand theft / organized crime of value stored in US dollars and US dollar denominated financial instruments by holders around the world, let alone US tax payers.
"When plunder becomes a way of life for a group of men living together in
society, they create for themselves in the course of time a legal system that
authorizes it and a moral code that glorifies it." - Frederic Bastiat, 'The Law'
Gold and silver are ** outside ** of this system of plunder.
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