Thoughts on Markets

Tuesday, October 12, 2010

China - Dollar - Gold - Silver - BULM - FVITF - Currencies

As usual, these are exciting times in markets. The volatility has picked up. The dollar continues downward with a jump now and then. I find it comforting to know that King Jesus is in total control and working all things for the eventual good of His people. 

He is the Sovereign Ruler of all whether we accept the fact or not. Our beliefs never change this fact. The only way we can not believe is to ignore Him and treat Him as though He does not exist. To face the fact of our sin nature is the turning point as the Holy Spirit convicts us. God's Law does this under the power of the Holy Spirit. 

I pray that each of you know and serve King Jesus. To do so is life with peace of mind and soul, and to reject is death.

From The Daily Pfennig ( "At the top, I mentioned that there was saber rattling with China going on... Well, now the Europeans are shouting a bit louder that they are dissatisfied with China's currency policy... So, now the U.S. and Europeans are ganging up on China. It just so happens that this Friday, the U.S. President could take the next step and actually call out China, and name them a "currency manipulator"... Hmmm... I wonder if the President will put his money where is mouth is with regards to China... For being named a Currency Manipulator is a bad thing for a country, as penalties, tariffs, and other dastardly things could be bestowed on them. Again...

The Chinese aren't telling us or the Europeans how to run their respective countries... It wasn't the Chinese that pushed the U.S. or Eurozone GIIPS to spend like drunken sailors... I only use that line to bring up a great line by Ronald Reagan who said that, "We could say [pick your party] spend money like drunken sailors, but that would be unfair to drunken sailors. It would be unfair, because the sailors are spending their own money." No...

They didn't... And so now, we point the blame finger at China, even though our problems and the Europeans' problems were self inflicted! If I see Schumer on TV one more time blaming China, I think I'll get physically ill!" This is dangerous stuff. It is the stuff of which leads to wars. This is certainly true of the past and nothing seems to have changed today. 


Marc Faber Says World Heading for `Major Inflection Point'
Global markets are heading for an “important turning point” as interest rates begin to rise within about three months and the U.S. dollar gains, according to investor Marc Faber.
Investors should buy stocks and sell cash and bonds because governments are continuing to print too much money and may create a new “credit bubble,” Faber, publisher of the Gloom, Boom & Doom report, told reporters during a forum in Seoul today.
“Instead of interest rates going down, they could start to go up, instead of the dollar being weak, it could strengthen,” Faber said. “I’m ultra-bearish on everything, but I believe you’ll be better off owning shares than government bonds.” This is certainly different from the mainstream thought. The dollar is technically showing few signs of a turn around from its down trend. The Federal Reserve and Federal Government have given no indication of attempting to strengthen the dollar. All in that regard has proven to be nothing but rhetoric. HERE.


Constructing a bear case for gold
As gold continues to hit higher highs, a search for bears becomes slightly easier but, most remain in hibernation - at least in the short term HERE.


Gold slips below $1,345 as the dollar rebounds
Markets remain uncertain over the extent of the quantitative easing expected from US authorities which has dented interest in the metal HERE.


The long and short of what's happening with silver
Things appear to have changed in silver trading with the bullion banks nearing a position where they may have lost control of the markets HERE.

From Here is Fortuna. Which way from here? I believe further upward, but that is only a guess. However, we are in the season for strong moves in precious metals.

Here is Gold American Mining: 

Here is Bullion Monarch from times past. It is shows a great deal of life. Likely in view of a buyout offer. This is a speculation, at best:

Miners from

Currencies from

Some prices: FVITF 3.156; AILA 0.81; TBT 31.5201 (Treasuries off a bit); BULM 1.12; DOW off 61.61 to 10948.31; SPX off 5.09 to 1160.23; Gold off 6.80 to 1347.10; Silver off 0.17 to 23.11.

Best to each, Doug


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