On the other hand, Larry declares that since gold did not hit on his magic line, it will now be at least till January (after telling us that he did not see how the correction could go into the New Year) till it can drop enough to hit a new low on his squiggles.
Larry also predicted that the US Dollar would rally (and had his subscribers buy UUP, the UP $). Why? Because as the Euro imploded, European capital would flow into the Dollar and gold.
None of these things have happened. Why? I tell you. I don't know. I suspect that the colossal amount of money printed has overwhelmed normal market forces. WE KNOW that the FED is buying Treasuries, so interest rates stay low - for now. As long as the phony money is accepted as real, the FED will get away with it.
I guess that the big question concerns what the Chinese and the Japanese will do with their hoard of T bills. Will the Chinese carry out the "de-Americanization" they talked about in Xinhua? If they do, the Dollar might be toast and collapse is just around the corner.We have seen the US Dollar tank lately and so the question is; More to come?
No comments:
Post a Comment