Thursday, November 26, 2009

Gold and the US Dollar

Gold is going up. The US dollar is going down. Gee, wonder why. Not that gold can not move to the upside on its own.

Amazingly, the air head Muppets on CNBC are taking Ron Paul seriously all of a sudden. Could it have been the relentless rise of gold over the last month that has forced them to make an about face, 180 degree turn from ignoring gold so that they won't be consider stupid or out of touch and therefor ignored?

"They used to cut away from him during broadcasts of congressional hearings when he got to question Federal Reserve officials. But this week CNBC's "Squawk Box" program did a wonderful 14-minute interview with U.S. Rep. Ron Paul, R-Texas, sponsor of the increasingly popular legislation to audit the Fed. The interview treated the subject with substance unusual for television." - Chris Powell, Daily Dispatches

Paul quotes from the interview:

"Gold is telling us that the dollar is in danger."

"The Fed is going to self destruct because they're going to destroy the dollar."

"Last week they bought up $75 billion [of Treasury debt] and foreigners bought up $11."

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