Long Term Trend More Obvious
Keep your eyes on the long term trend for precious metals and the mining stocks. Check out the One Year Chart on Kitco.com. The "massive correction" we just experienced is but a blip on the chart. Longer term charts even make the amount of the correction more insignificant.
There are many pressures on the dollar which will continue to push it downward in the long term. It, of course, will have a few upward ticks from time to time. The deficit spending, export imbalance, and the massive liquidity created by the Federal Reserve and the fractional banking system will come home to roost. The foreigners will not continue to support our spending binge forever. There will come a time, and I believe it has started already, when they will begin to taper off financing our debt. We are also in the early stages of a reapportionment of dollar reserves in foreign banks. They are more interested in gold and the Euro now.
There is a push among Asian nations, China in particular, to have an Asian currency similar to the Euro. Wow, that will mean even less need for dollars in Asian banks.
The dollar can not stand up against all of these negative forces. Thus, it will fall in value or purchasing power.
Move to lower you own personal debt and build a reserve of cash for emergencies. This is critical at this point in time and will become even more critical in the near future.
I will be out of pocket again most of this week, but plan to post again on Thursday or Friday. Gold is trading a $617.90 as this is written on Sunday evening.
I trust that each of you joined in corporate worship of the Lord our God today. That must be very important in each of our lives.
Best to each, Doug
There are many pressures on the dollar which will continue to push it downward in the long term. It, of course, will have a few upward ticks from time to time. The deficit spending, export imbalance, and the massive liquidity created by the Federal Reserve and the fractional banking system will come home to roost. The foreigners will not continue to support our spending binge forever. There will come a time, and I believe it has started already, when they will begin to taper off financing our debt. We are also in the early stages of a reapportionment of dollar reserves in foreign banks. They are more interested in gold and the Euro now.
There is a push among Asian nations, China in particular, to have an Asian currency similar to the Euro. Wow, that will mean even less need for dollars in Asian banks.
The dollar can not stand up against all of these negative forces. Thus, it will fall in value or purchasing power.
Move to lower you own personal debt and build a reserve of cash for emergencies. This is critical at this point in time and will become even more critical in the near future.
I will be out of pocket again most of this week, but plan to post again on Thursday or Friday. Gold is trading a $617.90 as this is written on Sunday evening.
I trust that each of you joined in corporate worship of the Lord our God today. That must be very important in each of our lives.
Best to each, Doug
posted by Doug @ 8:38 PM
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