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Gold Forecaster – Why does gold fall when the dollar rises?

Mon, 12/13/2010 - 7:02am -- editor
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[[wysiwyg_imageupload:870:]]By Gold Forecaster

We are all used to reading that gold rose because the dollar fell or that gold fell, because the dollar rose.   The picture conjured up is one of traders racing in to actually buy or sell gold as they watch the exchange rate move.   When U.S. Treasury yields rose this week, the dollar strengthened slightly and the gold price dropped.  When we watched this happen it seem to happen immediately and precisely and we were led to believe that much more was happening than met the eye.   After all if gold moves in the opposite direction to the U.S. dollar, this implies that it is moving not just with but almost riveted to the euro.   What’s the story behind this?

What Happens When Currencies Go Bust?

Wed, 12/08/2010 - 8:07am -- editor
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[[wysiwyg_imageupload:818:]]By Mogambo Guru

Dollar Bills Sinking

I was telling the doctor that I distinctly heard a popping sound inside my head when I saw that the foul Federal Reserve had created, last week alone, another $24.2 billion in Fed Credit, which was instantly turned into money when the Fed bought $24.2 billion of US government securities, and all in One Freaking Week (OFW)! It made a kind of "sizzling" sound.

Furthermore, a tortured howl of outrage boils up inside me (which tastes surprisingly like stale beer and pepperoni pizza) at the Sheer Inflationary Horror (SIH) of this creation of $24.2 billion in new money in One Freaking Week (OFW)!!

Currency Manipulation: Two Sides to Every Coin

Tue, 11/30/2010 - 2:36pm -- editor

[[wysiwyg_imageupload:736:]]By Kieran Osborne
Recently, currency manipulation has garnered headline attention. We have been constantly bombarded with rhetoric out of Washington: "China isn't allowing its currency to appreciate fast enough"; "China's exchange rate policies are stealing jobs from America"; "We're playing fair, why can't China?" More often than not, the more vociferous proponents come from politicians who, in our opinion, are simply posturing for votes; attempting to provide catchy sound bites they believe will resonate with their constituents, without fully grasping the underlying fundamentals at play. The situation itself is truly paradoxical - akin to a major corporation thanking its largest creditor by insulting them.

The currency debate, just as every coin, has two sides. Let's address each of the above concerns in turn, and what it means for you as an investor:

U.S. Reality Check: China, Russia Drop the Dollar

Sun, 11/28/2010 - 10:45pm -- editor
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By Tony Richardson

A look at how the use of bilateral trade settlement is growing

Chinese Premier Wen Jiabao and Russian President Vladamir Putin announced in St. Petersburg, Russia, on November 23, 2010, that they will stop using the U.S. dollar to settle bilateral trade and instead use the ruble or the yuan, according to a report in the state-run China Daily. Bilateral trade between the two countries stands at roughly $60 billion. Put in perspective, assuming two-thirds of international trade is transacted in U.S dollars, this accounts for 0.3% of dollar usage in a global economy valued at roughly $30 trillion. This agreement, then, is not particularly meaningful in terms of U.S.-dollar utilization, but when we consider the exponential implications, the effects are huge.

What Could Trip Gold Up?

Fri, 11/19/2010 - 7:25am -- editor
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[[wysiwyg_imageupload:625:]]Can you visualize a possible scenario that could put a sudden end to the secular rise now underway in gold and silver?

In a recent conference call with the research team of The Casey Report, we once again collectively tried to imagine what situation... what scheme... what government manipulation... might finally put a stake through the heart of gold.

Setting the stage, I think it's safe to assume that in order for the gold bull to decisively reverse direction, the following general conditions would have to be precedent in the economy:

Bonds, Dollar, SP500 & Gold Have Changed Direction – Are You Ready?

Thu, 11/18/2010 - 7:15am -- editor
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[[wysiwyg_imageupload:615:]]By Chris Vermeulen

There have been some major trend changes recently and it looks as though more investments are about to follow. The real question though is… Are You Ready To Take Advantage Of It?

It has been an exciting ride to say the least with the equities and metals bull market and the plummeting dollar. But it looks as though their time is up, or at least for a few weeks. Traders and investors will slowly pull money off the table to lock in gains or cut losses and re-evaluate the overall market condition before stepping back up to the plate and taking another swing.

Pivotal Events

Wed, 11/17/2010 - 8:16am -- editor
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[[wysiwyg_imageupload:603:]]By Bob Hoye


    "Personal Debt Ballooning"

    "The Best Way to Rob a Bank is to Own One"

    - William Black, former FDIC official,
    and quoted in the Financial Post on October 21, 2010

    He also added that the FDIC is intentionally keeping foreclosures down because it does not have enough funds to pay off depositors who are insured by the FDIC.


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