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Dollar Crashes As Gold Surges To Fresh All Time High (And Currency Coolmaps)

Tyler Durden's picture


Gold has just hit a fresh all time record (with equity futures down), as the world has finally awakened to the central banker ruse. With spot touching at $1,293.5 perhaps all those seeing some reversion to the mean occuring in the metal would be better advised to look for a career as robot algos, that do nothing but seek std dev divergences from a VWAP mean. In the meantime, gold will continue to chug along to $5,000+, now that FX interventions is how the central bankers of the world will be spending all their trading hours.

And accompanying this, is the latest near-death experience for the dollar, which is falling across the board everywhere, as the following heatmap demonstrates: the USD is weaker against every single currency, presumably even the ZWD.

And here is why Angela Merkel is about to generate another massive European crisis behind the scenes. Sorry Greece, this one may mean you are out.

And here is why central bankers are all very, very impotent people. Note the complete inability to intervene in the desired way, while merely debasing their own currencies.

BOJ intervention effect already cut in half:

As for SNB intervention, it never even had an effect:


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Wed, 09/22/2010 - 08:10 | 596763 VK
VK's picture

Gold bitchez! As is customary.

Wed, 09/22/2010 - 08:24 | 596788 boricuadigm-shift
boricuadigm-shift's picture

I would love for Gold to hit $1300 on my 30th Birthday!!  Today!!  Best Present Ever!!!


The numbers even go together  $1300 for my 30th!  Buyyaacaaa!!!


Today is the day my friends!!

Wed, 09/22/2010 - 08:35 | 596809 cartonero
cartonero's picture

¡Feliz Cumpleaños!

Wed, 09/22/2010 - 09:14 | 596884 RockyRacoon
RockyRacoon's picture

Happy Birthday to US.  I'm 62 today.  It is a nice present I'll admit.

Just hoping there is no appreciable smack down at the usual time.

Wed, 09/22/2010 - 09:27 | 596920 Hephasteus
Hephasteus's picture

Happy Birthday Rocky!!

Wed, 09/22/2010 - 11:30 | 597325 Bananamerican
Bananamerican's picture


Wed, 09/22/2010 - 10:02 | 597036 DosZap
DosZap's picture

Happy B Day dude............

I want a smackdown, may be the last dip until after the elections.Or before Meltdown.

Expiry is Monday?........we'll see.

Wed, 09/22/2010 - 10:13 | 597075 DoChenRollingBearing
DoChenRollingBearing's picture

Happy Birthday fellas!

Wed, 09/22/2010 - 11:01 | 597230 boricuadigm-shift
boricuadigm-shift's picture

Great!  Happy Birthday to US!  Enjoy your day!

Wed, 09/22/2010 - 12:17 | 597505 Rotwang
Rotwang's picture

Happy Anniversary!

I know the actual day was some time ago. :)

The mental image (in aggregate) of the wealth storage function is the source of the manipulation.

Wed, 09/22/2010 - 08:29 | 596796 UninterestedObserver
UninterestedObserver's picture

Race to the bottom currency bitchez!

Wed, 09/22/2010 - 09:13 | 596882 aerojet
aerojet's picture

I would be cautious here--the PTB never do anything so obvious.

Wed, 09/22/2010 - 08:31 | 596801 unwashedmass
unwashedmass's picture

Tyler, has anyone thought of asking Harvey Organ to post his blog here -- not his recap of the news, but the nightly run down of the Comex.....

and the "delivery" situation....

might be helpful if harvey got a much wider audience so everyone really grasps just how weak the cartel is becoming....

Wed, 09/22/2010 - 08:31 | 596802 unwashedmass
unwashedmass's picture

Tyler, has anyone thought of asking Harvey Organ to post his blog here -- not his recap of the news, but the nightly run down of the Comex.....

and the "delivery" situation....

might be helpful if harvey got a much wider audience so everyone really grasps just how weak the cartel is becoming....

Wed, 09/22/2010 - 08:50 | 596836 Internet Tough Guy
Internet Tough Guy's picture

Harvey has been screeching 'COMEX implosion' every week for years. When the COMEX does implode, it won't be because of what Harvey sees.

Wed, 09/22/2010 - 09:35 | 596940 unwashedmass
unwashedmass's picture

keep saying that as your silver/gold short buries you.

Wed, 09/22/2010 - 08:11 | 596766 HelluvaEngineer
HelluvaEngineer's picture

I'm proud to be an American, where at least I know I'm free.

Wed, 09/22/2010 - 08:30 | 596797 barkingbill
barkingbill's picture


patriot act?

unpopular wars and banker bailouts. 

we are ranked 8th in economic freedom, behind switzerland, hong kong, singapour, denmark, canada, etc...

ranked 36th for press freedom, behind just about everyone except for north korea


the idea that only America is a free country and everywhere else everyone is enslaved to communism is a totally false illusion. many countries out there(i have lived in some of them) are just as free as we are....

Wed, 09/22/2010 - 08:31 | 596804 goldfreak
goldfreak's picture

he's being sarcastic

Wed, 09/22/2010 - 08:33 | 596807 barkingbill
barkingbill's picture

yeah i was going to add, unless you are being 

Wed, 09/22/2010 - 09:13 | 596881 rocker
rocker's picture

We can only hope.

Wed, 09/22/2010 - 10:23 | 597096 Dantzler
Dantzler's picture

Your 1st link is busted.

"Error 404 - Not Found"

Wed, 09/22/2010 - 14:44 | 597941 Kobe Beef
Kobe Beef's picture

...And I forgot, all the men who died,

So they could take my rights from me.

And I'll meekly SIT DOWN, next to you,

And believe in my TV.

'cause there ain't no doubt that I love this lie

God Bless the USAAAAAA


Wed, 09/22/2010 - 08:13 | 596768 bada boom
bada boom's picture

Japan has threatened more intervention.

Do they really want to push the USD down, again?

Wed, 09/22/2010 - 08:50 | 596793 G-R-U-N-T
G-R-U-N-T's picture

"The Committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate."

Interesting just how far from principle, and basic morality we have fallen. The Fed now in it's arrogance has just warned us how they are going to rob us.

Wed, 09/22/2010 - 09:18 | 596893 RockyRacoon
RockyRacoon's picture

The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings.

That means, "We will continue to eat the seed corn."

Wed, 09/22/2010 - 10:09 | 597060 G-R-U-N-T
G-R-U-N-T's picture

Genetically modified tainted seed corn to be sure...

Also, Happy Birthday RockyRacoon and I wish you many more to come! :)

Wed, 09/22/2010 - 08:36 | 596811 EscapeKey
EscapeKey's picture

The BoE have started talking about QE2.0 this morning as well.

Wed, 09/22/2010 - 08:56 | 596848 DarkMath
DarkMath's picture

You mean push the Yen down again right? The Bank of Japan is selling Yen to make their exports more affordable.

Wed, 09/22/2010 - 08:17 | 596774 Hephasteus
Hephasteus's picture

Isn't options expiration tomorrow? This bitch could go 1320 before pm fix. It's really moving.

Wed, 09/22/2010 - 08:45 | 596825 NOTW777
NOTW777's picture

BB bands show 1322ish

Wed, 09/22/2010 - 08:48 | 596828 buzlightening
buzlightening's picture

PM OEX close of business Monday 9/27!!

Wed, 09/22/2010 - 08:19 | 596778 Silverhog
Silverhog's picture

Boy Tyler, can you make this a daily post! I'm goining to need a new dog avatar with a bigger smile.

Wed, 09/22/2010 - 09:19 | 596897 RockyRacoon
RockyRacoon's picture

Cheshire dog?

Wed, 09/22/2010 - 09:42 | 596959 mrgneiss
mrgneiss's picture

Wow, I thought it was a smiling polar bear.

Have one for me, RR, on your special day!

Wed, 09/22/2010 - 10:06 | 597049 Hephasteus
Hephasteus's picture

Aren't raccoons supposed to have poor eyesight by your age. :P

Wed, 09/22/2010 - 08:19 | 596779 Young
Young's picture

Yeah, really love that euro action - not. WTF, there's only shit coming out of Europe, still ithas the stomach to rise. Deutche warns on profit, industrial orders come in below expectations...

Wed, 09/22/2010 - 08:21 | 596781 Snidley Whipsnae
Snidley Whipsnae's picture

Print, Print, Print... Obviously the central banksters didn't hear Greenspan's message ... "all this fiat money has only one place to go, into gold".

Look for more obstructions to be thrown up in the path of individual gold ownership.

But, what can the central banksters do about the gazillionairs that are demanding physical delivery from the LBMA? Damned little, I would guess. When the rentier class runs to gold and insider selling in equities is ~300:1 or 600:1 we must realize the gig is about over.

The FIRE economy is smouldering.

Wed, 09/22/2010 - 08:22 | 596782 Internet Tough Guy
Internet Tough Guy's picture

Heh, Jim Sinclair trumps Robotroll. Is Prechter still triple short gold?

Wed, 09/22/2010 - 08:54 | 596843 Turd Ferguson
Turd Ferguson's picture


Wed, 09/22/2010 - 08:22 | 596783 Sean7k
Sean7k's picture

It is a sad day, when like every banana republic ever envisioned, the American must run for cover and find sanctuary for their wealth. The dollar, descended from the thaler, is becoming the evolutionary weak link in the chain. 

In older societies, leaders whom failed so miserably would have fallen on their own swords. Where is YOUR sword Ben? Timmy? Oh, there it is...sticking in my back.

Wed, 09/22/2010 - 08:24 | 596789 HelluvaEngineer
HelluvaEngineer's picture

Futures about to turn green.  Of course.

Wed, 09/22/2010 - 08:24 | 596790 Charley
Charley's picture

The US is doing to every nation what every nation is doing to its own population: impoverishment through devaluation. Getting the wage basket down in gold terms is the order of business.

There is no possibility of a reset without effective devaluation of assets and wages. But, this cannot be a merely monetary devaluation -- for it to really take hold, real existing productive assets must mothballed, actual productivity must fall as productive assets are replaced by greater speculation  and waste, and some currencies must collapse.

He wrote the book on this, of course ... But, he is the Cassandra of the NeoClassical Age

Wed, 09/22/2010 - 08:27 | 596791 FranSix
FranSix's picture

Interesting action on the CYB.  So far, any upsurge in the  Yuan signalled the eventual decline of the discount rate.  The jawboning about Chinese currency traders who work on wall street for pennies every day is having some effect:

A decline of the discount rate into the negative will impact directly on the face value of bullion leases and bullion lease rates.

For a long term cogent forecast, Dax in Gold can be translated using babelfish:

Babelfish translation:


Wed, 09/22/2010 - 09:23 | 596909 RockyRacoon
RockyRacoon's picture

Thank you for that.  It's about time that the U. S. centric view changed.

Wed, 09/22/2010 - 09:58 | 597022 FranSix
FranSix's picture

Oh no, thank-you!

Wed, 09/22/2010 - 08:29 | 596795 bigdumbnugly
bigdumbnugly's picture

The dollar is floating up toward the ceiling of the ICU and viewing itself from above.  It can now read its own serial number.  Soon it will be descending through a spiraling tunnel toward a bright light. it's all so peaceful...

Wed, 09/22/2010 - 08:31 | 596800 UninterestedObserver
UninterestedObserver's picture

LOL +1

Wed, 09/22/2010 - 08:58 | 596853 Rusty Shorts
Rusty Shorts's picture


Wed, 09/22/2010 - 11:45 | 597376 Bananamerican
Bananamerican's picture

...toward a bright orange light...

Wed, 09/22/2010 - 08:37 | 596812 Snidley Whipsnae
Snidley Whipsnae's picture

What we are seeing is what happens when fiscal/monetary policy insures that the only way for savers to make a return on investment over inflation is to speculate in risky debt instruments...Since even gold is not risk free but is seen as less risky than holding fiat or other paper denominated in fiat, the situation is dire indeed...Where is that poster that said yesterday that the dollar is on the verge of a 'powerful surge upwards'?

One day does not a trend make but this is a 10 year surge in PMs...and the main stream media continues to attempt to ignore it.

Look for Geithner to join Sommers on the DC exit bus.

Here is a great read from Michael Hudson addressing the BRIC countries and advising them how to avoid being sucked into the morass the Western Banksters have created for our nightmares.


"Challenging the Model of the North Where is the World Economy Headed? "

Wed, 09/22/2010 - 08:52 | 596839 bronzie
bronzie's picture

"10 year surge in PMs...and the main stream media continues to attempt to ignore it"

Richard Russell on 9/14/2010: "I show below a monthly chart of gold going back to 1999. What we see here is one of the greatest, least loved, and least recognized primary bull markets in history."

Wed, 09/22/2010 - 09:28 | 596921 RockyRacoon
RockyRacoon's picture

Little bank credit has gone to finance tangible capital investment. Most such investment has been paid for out of retained business earnings, not bank loans.

Businesses should grow from organic earnings, not borrowed money.  Borrowed money encourages malinvestment, especially the lower the rate of interest is.

That should piss off a few folks who argue (wittingly or not) that debt is an asset.

Wed, 09/22/2010 - 08:41 | 596814 Horatio Beanblower
Horatio Beanblower's picture

Don't Google it, please, just guess...


Who said these words?


"And the principle of responsible ownership should apply across the business world. We need successful business. But let me be quite clear. The Government’s agenda is not one of laissez-faire. Markets are often irrational or rigged. So I am shining a harsh light into the murky world of corporate behaviour.  Why should good companies be destroyed by short term investors looking for a speculative killing, while their accomplices in the City make fat fees? Why do directors sometimes forget their wider duties when a cheque is waved before them?

  Capitalism takes no prisoners and kills competition where it can, as Adam Smith explained over 200 years ago. I want to protect consumers and keep prices down and provide a level playing field for small business, so we must be vigilant right across the economy – whether in the old industries of economies textbooks or the newer privatised utilities and cosy magic circles in auditing, law or investment banking. Competition is central to my pro market, pro business, agenda." Answer - the UK's BUSINESS Secretary, about an hour ago. Full speech here -
Wed, 09/22/2010 - 08:46 | 596826 spinone
spinone's picture

Vince Cables

Wed, 09/22/2010 - 08:48 | 596829 Confused
Confused's picture

Thanks for the share.

Wed, 09/22/2010 - 08:39 | 596817 swanpoint
swanpoint's picture

bitchez! bitchez.

Wed, 09/22/2010 - 08:39 | 596818 dukeness
dukeness's picture

Why would anyone want dollars?  You can't eat them, you know.

Wed, 09/22/2010 - 08:44 | 596824 Snidley Whipsnae
Snidley Whipsnae's picture

Dollars will burn to create warmth during the coming winter. Old photos of Weimar Germany come to mind.

Purchase good quality airtight wood stove. Check!

Wed, 09/22/2010 - 09:03 | 596862 Rusty Shorts
Rusty Shorts's picture

Riverdale-on-the-Hudson, OCTOBER 15, 1902.


Sir,--Prices for the customary kinds of winter fuel having reached an altitude which puts them out of the reach of literary persons in straitened circumstances, I desire to place with you the following order:

Forty-five tons best old dry government bonds, suitable for furnace, gold 7 per cents., 1864, preferred.

Twelve tons early greenbacks, range size, suitable for cooking.

Eight barrels seasoned 25 and 50 cent postal currency, vintage of 1866, eligible for kindlings.

Please deliver with all convenient despatch at my house in Riverdale at lowest rates for spot cash, and send bill to

Your obliged servant,

Mark Twain, Who will be very grateful, and will vote right.

Wed, 09/22/2010 - 09:40 | 596955 Almost Solvent
Almost Solvent's picture

That quote is so awesome.

Too bad it is so true both then and now.

Wed, 09/22/2010 - 09:06 | 596868 OldTrooper
OldTrooper's picture

If sailors could figure out how to eat their boots we can come up with some recipes for dollars.  My suggestions:

Try steaming them until tender, then drain, cool and serve with ranch dressing.

Or for breakfast you can shred them, boil until you have a thick mash, serve with brown sugar and splash of cream.

Wed, 09/22/2010 - 08:42 | 596821 Silverhog
Silverhog's picture

I'm sure Gold ownership will come under fire when the price starts making a almost daily climb like this one. Silver may stay under the radar for just a little longer. But what happens when everybody never sells but start using it as real money?

Wed, 09/22/2010 - 08:48 | 596830 Snidley Whipsnae
Snidley Whipsnae's picture

I began as a coin collector in 1968 and have never sold gold or silver...even during the big run up to 800 bucks.

My grandfather went long Confederate currency/bonds and he gave me some of them. He told me to buy PMs and hold...he said there will be a time when PMs circulate as money again. Bless him. I miss him and his sound advice.

Wed, 09/22/2010 - 08:58 | 596852 bronzie
bronzie's picture

"there will be a time when PMs circulate as money again"

if you believe in cycles then PMs as money is inevitable - until just this year there wasn't a single non-fiat currency on this planet - Malaysia was the trend-setter with its new currency - many  more countries will follow as the cycle back to commodity based money continues

ironic that an Islamic country was the first

Wed, 09/22/2010 - 09:35 | 596935 RockyRacoon
RockyRacoon's picture

Interesting stuff there.  It's also worth noting that a government can devalue a currency.  I mean make it, by decree, without value -- none.  Just paper.   Some countries have invalidated their postage stamps.  Just - POOF - your stamps are not usable any longer.  You gotta buy the new ones.  The U. S. has not done that yet, but hide and watch.  Funny thing about all this is the property of precious metal.  It can be reborn into any shape with any denomination and it retains it original "value" in paper currency. That should tell the anti-gold folks a thing or two.  Look up "intrinsic".

Wed, 09/22/2010 - 09:43 | 596961 Almost Solvent
Almost Solvent's picture

Red (or blue) money "rumor"

Green USDs? worthless, only the new Red USDs are legal tender in T-minus 30 days.

Wed, 09/22/2010 - 23:45 | 599155 UninterestedObserver
UninterestedObserver's picture

Heard that about a year ago - any new links or info?

Wed, 09/22/2010 - 09:44 | 596967 packman
packman's picture

Malaysia was the trend-setter with its new currency

Did I miss something?  Got any more info on that?  I hadn't heard that.  It's not mentioned on Wikipedia's ringgit page; the latest it has is the de-peg from the US% in 2005; no mention of a change of backing.


Wed, 09/22/2010 - 10:49 | 597186 Occams Aftershave
Occams Aftershave's picture

To gauge public awareness, i carry a kennedy half dollar and from time to time offer to pay for something with it at melt value.   No takers yet.   The public is not quite ready.

Wed, 09/22/2010 - 08:50 | 596834 spinone
spinone's picture

Then people will have lost confidence in the dollar and we have hyperinflation.

But before then, the FED and the rest will have pulled out all the stops to keep the dollar the currency.

Wed, 09/22/2010 - 09:18 | 596894 Snidley Whipsnae
Snidley Whipsnae's picture

The Fed has tried about all of the 'normal' prescriptions and some that are abnormal. They can time date the money (with an expire by date) but that would force more money into gold or other commodities even faster. They could try interest rates below zero...good luck with that one. We are all in a petri dish and the Fed will continue the experiment until they can't.

The 'financialization' of the US economy is about complete.


Wed, 09/22/2010 - 08:44 | 596823 buzlightening
buzlightening's picture

Yep! Even if you win this rat basturd fiat currency rat race; you're still a rat!!

Wed, 09/22/2010 - 08:50 | 596832 99er
99er's picture

Chart: GC

Gold futures look kind of toppy here while the USD looks to be nearing a bottom. Good luck.

Wed, 09/22/2010 - 08:50 | 596837 Snidley Whipsnae
Snidley Whipsnae's picture

Good luck to you as well.

Wed, 09/22/2010 - 08:55 | 596841 99er
99er's picture

Chart: DX

Chart: SI

Silver may provide a clue: it is backtesting the Rising Wedge out of which it fell.

Wed, 09/22/2010 - 08:54 | 596842 spartan117
spartan117's picture

Johnny Bravo is back!

Wed, 09/22/2010 - 08:59 | 596854 99er
99er's picture

"Oohh, Mama!"

Wed, 09/22/2010 - 09:37 | 596944 RockyRacoon
RockyRacoon's picture

It seems that basing one's investing objectives solely on technical analysis can be tricky when markets are managed.  That's all.

Wed, 09/22/2010 - 09:58 | 597024 99er
99er's picture

Retail investors are cannon fodder for Bulls and Bears alike. Thinking about the battle whether by looking at charts or at the moon simply helps the little guy dodge the big bombs. RPGs? That's what gets us killed.

Wed, 09/22/2010 - 09:25 | 596915 SheepDog-One
SheepDog-One's picture

USD nearing a bottom would be -0-.

Wed, 09/22/2010 - 08:50 | 596835 barkingbill
barkingbill's picture

so when it gets to 1297 or something like that it will stall before climbing $1300 and fall back on profit taking and sell off a bit with the market? or is it gonna just keep on running...

Wed, 09/22/2010 - 08:54 | 596845 Snidley Whipsnae
Snidley Whipsnae's picture

If the LBMA is really being forced into open market gold sales to cover their allocated physical accounts that the LBMA has 'borrowed against' (which Jim Willie claims they are) then why would the maket correct?

We may soon find out if Mr Willie is correct.


Wed, 09/22/2010 - 09:16 | 596840 Paper CRUSHer
Paper CRUSHer's picture


Since it looks like we will be witnessing a 70's type move in Gold this masterpeice...i meant time peice will capture this move in style so let the countdown begin and place you order now:

Uwerk UR-CCI Black Cobra Watch is available in grey gold coated with ALTiN,an alloy of aluminium,titanium nitride that apparently makes the gold ten times tougher.This unique watch has a linear readout similar to those instrument display'thermometer'type speedometers that were found on 70's cars.Just 25 of these limited edition Black Cobra will be made....On A Long Enough Time Line i meant to say...This Watch Will Trace A Line Then Return To Zero.

You know what i like best about this watch,What's that ya ask?...THE PRICE!....$350,000!

Time is usually - nearly always - displayed by a circular indication: one dial and two (or three) with the time displayed around a perpetual circle. However, this 360‹ representation of time goes against everything we learnt as we grew up drawing a straight line on a blank page and marking it Past, Present and Future. Why do we think of time as travelling in a straight line yet display it rotating around a circle? The answer is straightforward: mechanisms that continually rotate are much simpler to produce than those that trace a straight line then return to zero . In fact, the latter is so difficult that, until now, nobody has ever managed to develop a production wristwatch with true retrograde linear displays.

Wed, 09/22/2010 - 10:28 | 597050 Paper CRUSHer
Paper CRUSHer's picture

To the Junkers.Listen punk ass bitches,

For your kind information i was as a matter of fact searching for a gold or gold-titanium alloy watch ($3000 max) to buy when i came across the watch above by accident. It is not my intention to turn this site into a toxic waste dump.As i already have enough gold,silver bullion of various kinds which I purchased from 2003-2006 i thought i'd splash the $$$cash on something different this time round.BTW,I ordered a small batch of 2011 Canadian 1oz Silver Wolves a few days ago.

Wed, 09/22/2010 - 08:55 | 596846 Fix It Again Timmy
Fix It Again Timmy's picture


America is one of the world's FREEST countries - the elites and TPTB are FREE to screw over the masses in any way they can...

Wed, 09/22/2010 - 09:10 | 596876 barkingbill
barkingbill's picture

that's true. it's free enough for THEM.

Wed, 09/22/2010 - 08:58 | 596851 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

Ok, I've been away a few weeks.  What happened to Johnny Bravo?  Did he get on here and throw a tantrum and leave, stop posting like he promised or just disappear like a fart in the wind?

Wed, 09/22/2010 - 09:02 | 596859 bronzie
bronzie's picture

he's logging under the 'VWBug' moniker now

Wed, 09/22/2010 - 09:03 | 596860 Snidley Whipsnae
Snidley Whipsnae's picture

'Disappeared like a fart in the wind'... after he demanded respect and some of us advised him that respect must be earned and cannot be granted.

Unless, of course, you are working for the Fed or treasury...

At those organizations you can be a tax cheat, a destroyer of Harvard's Endowment Fund, or simply ignorant....and the main stream media will treat you like royalty.

Maybe Johnny got a gov job?

Wed, 09/22/2010 - 09:39 | 596953 Trigga
Trigga's picture

I heard JPM hired him.

Wed, 09/22/2010 - 10:14 | 597076 tmosley
tmosley's picture

Nope, he's busy doing his grandma's taxes.  Wants to get a jump next year.

Wed, 09/22/2010 - 09:06 | 596866 Silverhog
Silverhog's picture

I just wonder how many new Eric Sprotts there are out there looking for physical Gold in volume. Maybe this the real beginning of Hyperinflation when people start buying Gold or anything else of value an dump their dollars faster and faster. German's lost faith in their currency well before the massive printing really took hold. They cleaned out art galleries, coin shops and jewelry stores. We maybe just at the beginning.

Wed, 09/22/2010 - 09:17 | 596892 Internet Tough Guy
Internet Tough Guy's picture

Not just Sprotts, sovereign nations are in the market to buy. This is the endgame FOFOA talks about.

Wed, 09/22/2010 - 09:23 | 596908 newstreet
newstreet's picture

Orly, what should we do? 

Wed, 09/22/2010 - 09:53 | 597001 Diogenes
Diogenes's picture

Harry Lime lives. First lesson in how the system works. Orson Welles explains it in Vienna in 1949.

Wed, 09/22/2010 - 09:57 | 597015 RockyRacoon
RockyRacoon's picture

Bill Simon, CEO of Wal-Mart’s U.S. business, at a Goldman Sachs conference last week, on behavior at a Walmart store around midnight at the end of a month:

“The paycheck cycle we’ve talked about before remains extreme. It is our responsibility to figure out how to sell in that environment, adjusting pack sizes, large pack at sizes the beginning of the month, small pack sizes at the end of the month. And to figure out how to deal with what is an ever-increasing amount of transactions being paid for with government assistance.

“And you need not go further than one of our stores on midnight at the end of the month. And it’s real interesting to watch, about 11 p.m., customers start to come in and shop, fill their grocery basket with basic items, baby formula, milk, bread, eggs,and continue to shop and mill about the store until midnight, when electronic — government electronic benefits cards get activated and then the checkout starts and occurs. And our sales for those first few hours on the first of the month are substantially and significantly higher.

“And if you really think about it, the only reason somebody gets out in the middle of the night and buys baby formula is that they need it, and they’ve been waiting for it. Otherwise, we are open 24 hours — come at 5 a.m., come at 7 a.m., come at 10 a.m. But if you are there at midnight, you are there for a reason.”

"Watching Wal-Mart at Midnight"

Wed, 09/22/2010 - 10:19 | 597080 gwar5
gwar5's picture

Rickards said if gold got around $5000+/-  it could take a role supporting the dollar again. Not so sure about that, and would like an audit, assay for tungsten, and do the math myself. All depends on what's actually there and not subject to a counterparty.

If it's good enough for the Chinese, it's good enough for me. 

Wed, 09/22/2010 - 11:52 | 597399 VWbug
VWbug's picture

as the world has finally awakened to the central banker ruse

i really think this is true and extremely important.

the fed has acted as if zirp and printing presses at full speed have no downside, and clearly they were happy with a fall in the USD.

But now we are getting to the scary point of no return...

A bit less confidence by the ROW in the USD and we could see a violent collapse that ould only be saved by raising rates dramatically.

BB is closer than ever to being between a rock and a hard place.

I am short QQQQ and just took profits on 25% of my short CAD position. Feeling pretty good about it.

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