Dollar vs. Gold - Miners - Internment Camps?

A Tale of Two Cities, I mean graphs. Folks, from the looks of the two following graphs, which looks the best for you, Dollars or Gold? Look them over carefully. For the dollar which is below both the 50 and 200 day moving averages, we can make out an inverted "W" (See the three short purple lines.). This is a negative technical formation. Further, the dollar is in a down trending trough. The Brazilian Real has had a very good year against the dollar and looks to be headed higher against the dollar in the future. The Euro is up above $1.42 with a strong showing. Remember, all these paper currencies only have value in relation to other currencies. The dollar is in a definite down trend and losing ground to other currencies. The Norwegian Krone is showing strength, too.

Gold has been strong for some time now. Forecasts by Sean Hyman who writes for FX University Daily are for gold to reach $1,300 this year and $2,500 next year. I do not believe this to be unreasonable, particularly, if the boyz would decide to leave the precious metals market alone. They are the fly in the metals price ointment. The gold being sold by the IMF is being scarfed up by China as she adds to her gold reserves. China is not ignorant of the value of gold at present prices. The RSI (upper panel on the graph) shows a definite up turn. The MACD in the lower panel shows, not only higher lows, but seems to be attempting an upward turn at the very end. The black dot added to the graph at the right of the pricing is well within the upward trend at today's price of 953. Incidentally, gold is presently 9:13 CST on a down tick.
The Cash for Clunkers did not give the anticipated boost to retail sales which came in off 0.1% from the low in June. By the way, retail sales in Brazil were up 1.7% for July. That should boost the Real even further against the dollar.

From MarketWatch.com:

Gold higher as dollar falls after CPI; silver hits 2-month high

NEW YORK (MarketWatch) -- Gold futures rose Friday, poised for a slight weekly gain, as the U.S. dollar fell after consumer price data, raising gold's appeal as an alternative investment. Read it HERE.

Silver is has been on a roll. Silver has many manufacturing uses, so it is more than a monetary metal. It may well out perform gold in the future. That is, percentage wise.

From ReutersIndia.com:

India July gold ETF collection up 23.6 pct on year
Fri Aug 14, 2009

 MUMBAI, Aug 14 (Reuters) - India's gold collection under
exchange-traded funds rose by 23.6 percent on year to 6.197
tonnes in July, data from the funds showed.

 At 3:52 p.m., the benchmark gold fund (GBES.NS) on the
National Stock Exchange was 0.41 percent higher at 1,487.61
rupees per gram. Read it HERE.

From WorldNetDaily.com:

LIFE WITH BIG BROTHER

National Guard reveals 'internment' job sites

Military confirms it follows Constitution, civilian leaders

Posted: August 13, 2009

10:30 pm Eastern
By Bob Unruh

© 2009 WorldNetDaily

Soldiers recruited to be "Internment/Resettlement" specialists by a series of National Guard ads concerning "civilian resettlement" locations would have assignments overseas, not within the U.S., says a National Guard spokesman who reports members pledge to follow the U.S. Constitution and take orders from American civilian authorities. Read it HERE.

Yes, that is what they would say, but think about the trend of big brother. He knows that he is running into domestic opposition and must guard against that. I would pray that all this is for overseas, but even there it is not morally correct. Think back on Cambodia during the Viet Nam War. The population was almost totally relocated there and I imagine they used some internment camps, as well. Of course, the Nazis did this in WW II. What is next in USS of Amerika? Pray that our states will interposition between us and the Federal Government.

More on Obamacare from the PeterMorrisonReport.com:

"Conservatives across America are rising up to protest Obama's plansto socialize our health care system. There's much more at stake, however, than just being able to choose our own doctor. Liberals know how important this battle is, which is why they're calling the protesters racists. If they can intimidate us into silence on this issue, they know there's no stopping Obama's socialist juggernaut. If we don't win this fight, the implications are more frightening than many people realize."

In his report, he references back to the 1973 movie Soylent Green in which overpopulation was aggressively "solved." Many of the provisions of Obamacare offer the same solution.

From TownHall.com:

Unwinnable War?

by Pat Buchanan

"Taliban Are Winning: U.S. Commander in Afghanistan Warns of Rising Casualties." Thus ran the startling headline on the front-page of The Wall Street Journal. The lead paragraph ran thus:

"The Taliban have gained the upper hand in Afghanistan, the top American commander there said, forcing the U.S. to change its strategy in the eight-year-old conflict by increasing the number of troops in heavily populated areas like the volatile southern city of Kandahar, the insurgency's spiritual home."

Source for the story: Gen. Stanley McChrystal himself. Read it HERE.

The War against Terrorists is following the pattern of the War on Drugs. It is open ended with no victory in sight. We are spending dollars we don't have, losing young military folks, and making enemies all over the world. Is it worth the effort? I do not believe it is in view of the cost and the lack of decisive success in either war.

Here are the prices of the miners compliments of the streaming quotes from Scottrade which remain on my computer screen while the market is open.

Gold is 953.60 and silver 14.81 with both on down ticks as I close.

Have a great day. Rather, make it a great day for yourself by praising the Lord moment by moment.

Best to each, Doug