The greatest bull market of all time is about to commence
Neither the US Administration or the Federal Reserve has shown any wish to halt the dollar’s collapse, instead citing its importance in reducing the US twin deficits.
Neither the US Administration or the Federal Reserve has shown any wish to halt the dollar’s collapse, instead citing its importance in reducing the US twin deficits.
With dogged determination, the gold price fought its way to the mid $450’s, before slipping at the end of the week to below $450.
One of the old tricks global central banks tend to pull in order to beef up exports and decreased imports is to purposefully devalue their home currencies.
Gold will remain an important element of global monetary reserves, aided by the 2004 Central Bank Gold Agreement.
As the dollar leaves behind the support in the 84 – 85 area on the index, the rate of decline is accelerating. The big questions now, ofcourse, are “How far will it drop?” and “Are we in for a full-blown dollar crisis?” The simple answer to these questions is “a very long way” and “yes”, respectively.
Anybody need more confirmation as gold strode, undaunted, through $450. The hesitance has been remarkable. So many appeared unwilling to be convinced and here we are half way to $500 already.
Gold has now made a clear break above the key $430 resistance level and is in position to advance to the $480 – $500 area.
Gold, with as strong a pair of legs as we have seen in this ‘bull’ market, strode up to $440, then past it, headed determinedly towards $450. Can you believe it, we’ve been so mesmerised by doubts about it staying above $400, that we didn’t expect it to stride away like this.
In their 1999 seminar treatise entitled, Unrestricted War: China’s Master Plan to Destroy America, Colonels Qiao Liang and Wang Xiangsui state that in order for China to become a dominant global power over the United States, “The Final War over Resources”, must be successfully concluded.
Our bearish views on the United States Dollar have been formed over years of watching what we view as reckless and incredibly shortsighted policy decisions by the Federal Reserve. The chief culprits of this attack on the greenback have been none other than Alan Greenspan and his band of merry sheep spearheaded by Ben “Printing Press” Bernanke and Bob “Lever up & Buy an SUV” McTeer.