Tuesday, August 04, 2009

Gold And Silver Are Chomping At The Bit To Run

Gold and silver are chomping at the bit to move higher, a lot higher. Gold and silver will roughly move inversely to government fiat tokens. Gold, silver and the HUI outside reversal days at the end of the first week in July were significant.

6 month chart of gold:

6 month chart of the US dollar:

2 year chart of gold:

2 year chart of the US dollar:

9 year chart of gold:

9 year chart of the US dollar:

People who understood what was happening inside the US and paid no attention to regular stocks, nor any attention to real estate, are way ahead of the herd.


Now for some bad news for the US, signs of the times, indications of the state of the US dollar:


"Wal-Mart has already broken out of the pack. Wal-Mart, the world's biggest retailer, plans to sell five-year "Samurai bonds" (commercial bonds denominated in Yen) out of its Japanese operations. The company filed documents with Japanese financial authorities on July 21. It is a law of markets that where commerce goes, Treasuries go later - to borrow - that being where the money is. Once the US Treasury follows Wal-Mart's lead - because it has to - the next step will be to "swap" debt paper still denominated in US Dollars for new paper denominated in other nations' money.

Once that happens, the US Dollar has lost its single reserve currency status and becomes just another currency amongst many while the US Treasury loses its ability to borrow internationally in US Dollars." - The Privateer


Jul 28, 2009, 11:15 a.m. EST
Citigroup sets final terms on 10-year euro bond

LONDON (MarketWatch) -- Citigroup Inc. will issue a EUR1.75 billion bond due to mature September 2019, at a spread of 385 basis points over mid-swaps, in a self-lead deal, the bank said Tuesday.

Order books for the transaction have exceeded EUR7 billion, attracting attention from more than 450 investors, the bank said.

The deal will be priced later Tuesday.


Can you imagine the US Treasury having to price their debt in non-US dollar denominations to get the junk sold? For instance US Treasury debt denominated (priced in) Yuan? It's a real possibility. The federal government's budget deficit will be about $2 trillion or more this year. They do not have it. It all has to be borrowed some how. Crazy!!! Insane!!! Especially when you consider the fact that they have $10s of trillions of dollars worth of unfunded liabilities to honor, which they will not, because there is no possible way that they can. The biggest, baddest, record breaking debtor in the world does not have anywhere near the wealth required. In fact there is not enough borrowable wealth in the whole world that can get the job done.


350 Years of Economic Theory in 50 Minutes


A good new article on silver and some big picture aspects of markets by David Morgan:

Silver Investing/Risk And Reward


What? 1,2,3 months till new all time highs in gold and silver?
There is no rush like a gold rush!!!!
The best parts of this bull market are still in front of us.

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