Who is Manipulating Currency Now?
The Federal Reserve's lowering of interest rate by 1/2% screamed loudly in investors' ears. The DJI moved up two days in a row. Some 300+ on Tuesday and 60+ on Wednesday on good volume. "Happy days are here again!" (The DJI is off 11.47 now.) The move on Wednesday was quite a bit quieter though. Perhaps, investors are beginning to think about the long term impact on the dollar. If, as expected, more interest rate cuts during this last quarter of 2007 come to fruition, the dollar will drop even further.
By the way, the Consumer Price Index (manipulated by government economists) showed a drop of 1%. Wow, no inflation! How wonderful! But wait, what do you see as you shop? Are not prices rising? The least expensive hair cuts have gone from $4.95 to $10.00 recently here. I, also, noticed that eggs, which were about $0.99 a few weeks ago, are now from $1.25 to $1.59. But I am so happy that there is no inflation in prices I must pay. At least, the government is telling me I should be happy.
The EURO is above $1.40. Gold began a rise over night and is now at $734.40 (26+ year high). Silver has responded and moved to $13.28. Silver still lacks the percentage move of gold, but should begin to follow more closely as gold rises. The base metals are up with copper moving toward a new high.
The housing bubble is still showing signs of the continuing saga of trouble. Realty Trac of Irvine, CA reported August notices of default to home owners was up 50% for July to 108,716 about 2 1/2 times last year's 42,144.
Also, it should be noted that housing starts were off 2.6% in August and building permits were off by 5.9%. These are the lowest since June of 1995.
Our national and personal debt is at all time high. It takes about Billion Dollars a day from foreigners to support our debt and spending binge. How long will they continue to support us with a depreciating currency? Iran just switched out of dollars to other currencies as their reserve. How soon will others follow? They will, we all know. Only the Lord knows when, though.
Keep depending upon the Lord for successful results of all your plans.
Gold is $734.60 now. See, it does retain purchasing power better than any paper currency.
Best to each, Doug
By the way, the Consumer Price Index (manipulated by government economists) showed a drop of 1%. Wow, no inflation! How wonderful! But wait, what do you see as you shop? Are not prices rising? The least expensive hair cuts have gone from $4.95 to $10.00 recently here. I, also, noticed that eggs, which were about $0.99 a few weeks ago, are now from $1.25 to $1.59. But I am so happy that there is no inflation in prices I must pay. At least, the government is telling me I should be happy.
The EURO is above $1.40. Gold began a rise over night and is now at $734.40 (26+ year high). Silver has responded and moved to $13.28. Silver still lacks the percentage move of gold, but should begin to follow more closely as gold rises. The base metals are up with copper moving toward a new high.
The housing bubble is still showing signs of the continuing saga of trouble. Realty Trac of Irvine, CA reported August notices of default to home owners was up 50% for July to 108,716 about 2 1/2 times last year's 42,144.
Also, it should be noted that housing starts were off 2.6% in August and building permits were off by 5.9%. These are the lowest since June of 1995.
Our national and personal debt is at all time high. It takes about Billion Dollars a day from foreigners to support our debt and spending binge. How long will they continue to support us with a depreciating currency? Iran just switched out of dollars to other currencies as their reserve. How soon will others follow? They will, we all know. Only the Lord knows when, though.
Keep depending upon the Lord for successful results of all your plans.
Gold is $734.60 now. See, it does retain purchasing power better than any paper currency.
Best to each, Doug
posted by Doug @ 8:57 AM
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