Thanksgiving - We thank Thee all our God

It was a wonderful time of thanking and praising our God. He has been so gracious to us and will be in the future to all of His people. He deserves our thanks minute by minute. Let each of us develop a heart full of gratitude to King Jesus!

The GLD chart above is for the ETF in gold. It is a good proxy for the metal gold. It is at 82.05 as this is written. Notice that the correction of the last two weeks failed to go below even the 50 day moving average (the blue curve on the graph). Corrections or sandy spots on the way upward in a bull market can be real threatening, but should be seen as just that. The bull market in precious metals continues with gold up over the week end and now at 826.50. That is not bad at all and should provide assurance that once again we are on the way up.

The minng stocks are following gold, but are mixed. Here are the ones which are presently up: DROOY 8.74; EGO 6.2401; GDX (Miner's index) 48.90; GSS 3.901;NEM 52.31; PAAS 34.77; SSRI 40.62; XRA 4.71. More will follow as gold price goes upward.

We would always like to know the future, but our finite minds can only follow trends. The timing is hidden from us to a great extent. We must learn all we can about long term trends and follow them. Thus, we should take every correction in a bull trend as an opportunity to add to our participation in the trend and hang tough. However, we should cautiously add to our holdings and not sink all our reserve cash in at one time. It is apparent that the long term trend of precious metals is up. Depend upon it, in spite of even drastic corrections. Play it that way!

Both Fannie Mae and Freddie Mac (the federal backers of mortgages) are in deep trouble with the melt down in sub prime and even prime mortgages. Together, they guarantee some $4.7 TRILLION. They cannot cover that without a federal bailout. A bailout of such magnitude would require the creation out of nothing many more dollars. Such inflation will result in higher price inflation than we are now experiencing.

The Sovereign Wealth Funds of governments control some $2.5 TRILLION which is about half of the dollar reserves around the world. This represents a redirection of the dollar reserves into businesses, stock, natural resources, real estate, and anything rather than dollars. The exodus from dollars appears to be in full swing.

There is much talk of the mid-east oil countries removing the peg of their currencies from the dollar to a basket of currencies. How long will the dollar serve as the reserve currency for the world?

There is much downward pressure on the dollar. This has a side effect of improving our exports by making them less expensive to the rest of the world. There has been a definite increase in our exports. The damage to the dollar will impact upon our economy and the prices we pay for necessary goods and services.

This from the Privateer (www.theprivateer.com) Number 579: "The US government stands or falls on the reliability and acceptability of the US dollar." If this is true, should not the dollar be protected rather than crucified? Rhetoric, alone, without positive action will not protect the dollar over time.

Let us earnestly pray that God will raise up statesmen to hold key positions in our government to replace the inept incumbents now serving at all levels. We need men of conviction in office who recognize that they hold positions by the will of God and are bound to follow His law in the exercise of the powers of office. Such men must not seek and relish selfish fame, power, and wealth, but follow the will of God. Without such MEN in office, our nation will perish as the further judgment of God falls upon us.

Best to each, Doug