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"The Dollar Plummets" May 2nd Edition

Tyler Durden's picture


After some patriotic sentiment modestly pushed the dollar to just above humiliation levels, the DXY is right back to lowest level since July 2008. We still have about 150 pips to go until the all time low of 71.3521 from April 22, 2008 is taken out. After that, the CNY better be ready to take over as reserve currency cause it will get ugly.


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Mon, 05/02/2011 - 10:45 | 1229477 Hephasteus
Hephasteus's picture

Good thing you were there all that time it went back up that it was in a bubble.

Way to save people. You savior saving dude!!

Mon, 05/02/2011 - 11:52 | 1229953 Pladizow
Pladizow's picture

They have told us what's coming:

Mon, 05/02/2011 - 12:23 | 1230157 SWRichmond
SWRichmond's picture

The volatility in the PM markets indicates that the big guns are firing.  Did any of you really not expect this?  Does the intensity of firing increase or decrease as the Reds get closer to the Fuhrerbunker? 

Strong hands.

Mon, 05/02/2011 - 13:22 | 1230501 covert
covert's picture

use an alternative mint, force the market to COMPETE for your accomplishments.


Mon, 05/02/2011 - 13:45 | 1230631 Hugh G Rection
Hugh G Rection's picture

If dethawing Osama's corpse and declaring victory gives the POSX only a minimal bump, I'm worried for another major false-flag event....

Mon, 05/02/2011 - 10:47 | 1229486 LRC Fan
LRC Fan's picture

GuyS, guys.  Stop junking MAth Man.  He is up 40k since last night, pRobably another 20k or so this morning.  And silver only Costs $5 us dollars to dig out of the ground.  Who cares if APMEX is running out of Eagles at an alarming rate?  And the dollar is tanking?  Ha...yeah right, the dollar is king always and forever. 

Seriously, if the Dow drops to 7k will you say "don't worry, we're only back where we were 3 years ago!"  Go suck off Leo Kevolkias and die, faggot. 


Mon, 05/02/2011 - 11:16 | 1229695 Hephasteus
Hephasteus's picture

I see what ya did there. LOL

Mon, 05/02/2011 - 11:43 | 1229906 btard4life
btard4life's picture


Mon, 05/02/2011 - 15:01 | 1231025 RockyRacoon
RockyRacoon's picture

Oooh.  I just love secret, hidden, encoded messages!

Mon, 05/02/2011 - 21:47 | 1232546 StychoKiller
StychoKiller's picture

A word for ya: Steganography

Tue, 05/03/2011 - 18:53 | 1236153 SWRichmond
SWRichmond's picture

five gee! doubleya!

Mon, 05/02/2011 - 10:52 | 1229523 Strike Back
Strike Back's picture

You've got to be a banker, studying for your CFA?  Because I've heard this argument from a banker before.

Dickhead, it was within that year three years ago that the dollar hit an all-time low.  Under that there's NOTHING, except for a new reserve currency, probably backed partially by . . . you guessed it, silver.


How's your 40k?

Mon, 05/02/2011 - 11:14 | 1229664 msamour
msamour's picture

Did you noticed how he put SARC in plain sitght! I think the comment was meant to be sarcastic.

Mon, 05/02/2011 - 11:15 | 1229683 Phillips Capital
Phillips Capital's picture


Mon, 05/02/2011 - 11:17 | 1229697 Strike Back
Strike Back's picture

Was replying to MathMan.  Check the alignment before you jump to conclusions.

Mon, 05/02/2011 - 15:47 | 1231234 NewAmericaNow
NewAmericaNow's picture

You think? lol

Mon, 05/02/2011 - 11:48 | 1229923 Ruffcut
Ruffcut's picture

For years now, when talking about dollar bottom, The number 60 keeps showing up.

Mon, 05/02/2011 - 10:50 | 1229524 fuggetaboutit
fuggetaboutit's picture

this is my new favorite argument, repeated by all morons and members of the adminstration

3 years ago the US economy was a carcass, subprime debt issues totally understood by market and the result was the "decoupling thesis", which shot oil to $148 as the world scrambled to figure out where to put assets to try to avert what was sure to be (and was) all out armaggedon in the US system

The dollar is back to where it was then, and that means no problem, dont sweat it?

How about where the dollar was from 2000 through 2007?

One thing I cant stomach is stupidity

Mon, 05/02/2011 - 12:04 | 1230036 Bay of Pigs
Bay of Pigs's picture

Mish likes to ignore that ten year chart. I guess that's a "conspiracy" too?


Mon, 05/02/2011 - 11:06 | 1229611 HoofHearted
HoofHearted's picture

Dollar is back to where it was three years ago when compared against other fiats. And just how have things been going for Europe, Japan, etc? Oh, then all should be swell for the USD also. Now compare it to the CAD, AUD, CHF, where things have been going, um, slightly better. It's notable that less than 10% of weight is on CAD and about 3% of the weight on CHF.

My silver from three years ago is doing slightly better when priced in USD. The USD is back in the trash where it was in 2008. Multi-year lows...get a clue and get a grip. Keynesian math just doesn't work...and this is from an actual math professor and not one of you silly undergrads who thinks he knows math.

Mon, 05/02/2011 - 11:16 | 1229676 Richard Head
Richard Head's picture

Great analysis meth man!  You really make the case with some strong data and unimpeachable logic.  What would I have done without you?  BTW, have you heard that silver only costs 5 bucks to dig out of the ground?

Mon, 05/02/2011 - 21:52 | 1232556 StychoKiller
StychoKiller's picture

Yeah, but Security Guards won't work for less than Minimum Wage!

Mon, 05/02/2011 - 12:06 | 1230054 SheepDog-One
SheepDog-One's picture

Poor Methman, popping his head up out of his dumpster to scoff at PM's...hey hows that big silver short doin now!

Mon, 05/02/2011 - 10:33 | 1229425 The Axe
The Axe's picture

yes the dollar is weak as hell, but it is over-shorted....a snap back is due. Regardless of the situation...

Mon, 05/02/2011 - 10:37 | 1229434 Ivanovich
Ivanovich's picture

That ol' commentary regarding how long irrational markets can go and insolvent investors comes to mind.

Mon, 05/02/2011 - 10:46 | 1229482 Law97
Law97's picture

Agree, it's a very crowded trade.  My unemployed drunk of a neighbor (living off his wife's inheritance) is now heavily short the dollar based on what he sees on the evening news.  That's a pretty good tell that the trade has run its course. 


As one-sided as the trade is, the snapback is likely to be violent.

Mon, 05/02/2011 - 11:00 | 1229571 LRC Fan
LRC Fan's picture

I don't know...the dollar is truly a piece of shit.  The DXY might rally because it just compares one worthless currency to another.  Gold is the important indicator here.  Gold wasn't hurt too bad and has some all the way back to take another run at the highs. 

Mon, 05/02/2011 - 11:03 | 1229579 Sophist Economicus
Sophist Economicus's picture

I hear this argument alot, and it may be true.   BUT, there are lots of 'non-future', REAL, dollars out there in foreign lands, on bank balance sheets, etc.   If these started to get 'converted' into other currencies - it wouldn't matter what the short interest was/is -- the spot conversion activity could drive the dollar into the toilet....regardless of DXY OI stances.   This is gonna turn into a confidence game real soon

Mon, 05/02/2011 - 13:53 | 1230701 Kayman
Kayman's picture


"This is gonna turn into a confidence game real soon" ?

When wasn't this a confidence game?  Let me trade your promise of "money" for my promise of "delivery" of_________( insert name of PM, stock, bond....)

This risk still is: Who gets to hold the hot potato ??



Mon, 05/02/2011 - 10:34 | 1229432 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

The $dollar doesn't even deserve to be called 'currency', let alone 'money'.

It's empty, worthless and devoid of value... a poignant choice of american symbolism.

Mon, 05/02/2011 - 10:50 | 1229527 Al89
Al89's picture

Everyone will be watching the 3 year low. Probably will touch around that level.

Mon, 05/02/2011 - 10:44 | 1229436 Americant Expat
Americant Expat's picture

And just got this email from ABC Bullion in Sydney. Keep in mind I placed this order on the the 25th of March and was told to expect delivery near the end of April.

May 2, 2011         

Sydney, Australia

Our records show you are waiting for delivery of 1kg PAMP silver right now? 

I’m writing to update you on silver availability at ABC Bullion during this time of extreme demand.

However, there is still approximately “4 week delivery time” for PAMP 1kg Silver and ABC 5kg orders.

Note:If you have an existing order for PAMP 1kg Silver, we are currently running to the delivery times outlined in your invoice statement (generally, this has been 3-4 weeks to delivery from the date of your payment).

Why 4-Week Delivery for PAMP 1kg ?

You might be interested to know a bit more about why the delays are happening right now…

ABC Bullion imports PAMP bullion directly from Switzerland (Geneva). Right now, manufacturing at PAMP in Geneva is still adapting to the continued increase in demand for their silver. Resources at PAMP have been diverted into meeting silver demand, and it will now take a few more weeks to catch up with the new levels of silver demand from around the world.

We expect your normal delivery timeframes (immediate pick up or delivery) to return for PAMP 1kg silver by early June.

Remember: Other Silver Lines Not Affected

All other lines of silver (including the smaller PAMP sizes) are not affected at all and you will receive them in the normal order timeframes.

Please note that, because every purchase is covered by shipped bullion, we are also able to guarantee that every PAMP 1kg silver order will be filled.

I hope this helps you understand the current situation and explains the delivery times for those of you waiting for PAMP 1kg bars.

Yours sincerely


Silver is angry and back on the bull rush.

Mon, 05/02/2011 - 10:38 | 1229441 New Survivalist
New Survivalist's picture

bin Laden buried at sea. Now that's rich!

Mon, 05/02/2011 - 10:46 | 1229485 CoolClo
CoolClo's picture

Very convenient.. no body, no proof.. What a great Government.




Mon, 05/02/2011 - 11:14 | 1229673 Jeff Lebowski
Jeff Lebowski's picture

As odd as I find the lack of information... Should he not be dead - a time dated video would inevitably surface from OBL - that's too much liability of negative exposure on the U.S. Government and Obama to be chanced.

I say he's dead.

Mon, 05/02/2011 - 14:06 | 1230789 Maxter
Maxter's picture

the point is that Bin Laden is though to have died at least 5 years ago

Mon, 05/02/2011 - 14:10 | 1230801 Kayman
Kayman's picture


I agree Bin Laden is dead.

He died of natural causes in his compound in Abbottabad, Pakistan where the U.S. government has allowed him sanctuary (wink, wink, nod, nod). Or he suffered from bad timing.

Luckily for the Puppet Masters, Obie needed a little bump in the polls and took this opportunity to "kill" him.

In 10 years !!  10 years, for Chrisakes, no arm of the U.S. government could find this guy ?  Satellites, drones, and bribing foreign governments and Bin Laden couldn't be found until now ??

The secular "revolutions" in Tunisia, Egypt and the rest of the middle east had to have emboldened the political puppets beholden to their financial puppetteers.


Mon, 05/02/2011 - 10:47 | 1229507 Rynak
Rynak's picture

"We have the body"...... *SNAP!*...... "Now we don't."

Mon, 05/02/2011 - 12:10 | 1230088 MisterMousePotato
MisterMousePotato's picture

AAnnnndddd ...... it's gone.

Mon, 05/02/2011 - 10:53 | 1229532 piceridu
piceridu's picture

They must think everyone on the planet is in first grade...they left out that Santa Claus and the Easter Bunny conducted the ceremony.

Mon, 05/02/2011 - 21:54 | 1232565 StychoKiller
StychoKiller's picture

Good taxidermists aren't hard to find; however, finding experience with stuffing Human skins...

Mon, 05/02/2011 - 10:37 | 1229449 TruthInSunshine
TruthInSunshine's picture

Now that OBL has been allegedly taken out, I anxiously await for this Most Wanted Alert to go out at CIA, FBI, Langley, Quantico, the Joint Terrorism Taskforce and within all LE Agencies immediately:

Capture or Kill Order:  Kill or Capture has been authorized on Ben S. Bernanke, William Dudley and all members of The Federal Reserve Bank for conspiring to 'blow up' the U.S. Dollar.

Mon, 05/02/2011 - 10:39 | 1229462 Robslob
Robslob's picture

I am sure British Petroleum's next "deepwater" exploration will end up resurfacing Osama's remains...shortly followed by massive corexant drops to hell Osama along with the oil from their next blow out find its way back to the oceans depths...

Mon, 05/02/2011 - 10:42 | 1229465 hedgeless_horseman
hedgeless_horseman's picture

My guess is all is not well in the KSA-USA relationship.  We know it will never last, the only question is when does the divorce make the papers.

Mon, 05/02/2011 - 13:58 | 1230721 Steelpulse
Steelpulse's picture


Mon, 05/02/2011 - 21:56 | 1232567 StychoKiller
StychoKiller's picture

I'm guessing Kingdom of Saudi Arabia.

Mon, 05/02/2011 - 10:40 | 1229467 the not so migh...
the not so mighty maximiza's picture

Drink faster your dollars are loosing value

Mon, 05/02/2011 - 10:57 | 1229566 Sheens Liver
Sheens Liver's picture

* losing

Mon, 05/02/2011 - 10:43 | 1229478 tradewithdave
tradewithdave's picture

Attention ZHers.  Did anyone else notice that this CLS Bank expose' was taken down.  Am I missing something or just overlooking it.

Dave Harrison

Mon, 05/02/2011 - 10:48 | 1229510 Bob
Bob's picture

The link works for me.

Mon, 05/02/2011 - 20:52 | 1232417 tradewithdave
tradewithdave's picture

I am not referring to the link.  I saved the link.  I am referring to the post.  It was made on the 30th and then all the sudden it just disappeared.  Does that seem strange to anyone?

Mon, 05/02/2011 - 10:46 | 1229484 alien-IQ
alien-IQ's picture

Patriotism, like Hope, is a lousy investing strategy.

Mon, 05/02/2011 - 10:47 | 1229495 Johnny Lawrence
Johnny Lawrence's picture

SLV back over the 9-day.  Don't see any technical damage on silver today.

Mon, 05/02/2011 - 10:52 | 1229516 Americant Expat
Americant Expat's picture

Is this because the Chinese are off holiday and ready to get their 'buy' on?

Mon, 05/02/2011 - 10:57 | 1229558 Johnny Lawrence
Johnny Lawrence's picture

No idea.  But there's definitely been some buying.  Chart on SLV looks healthy once again.  And I'm just using the same methodology that RobotTrader uses, but he won't admit it.

Mon, 05/02/2011 - 10:46 | 1229498 RobotTrader
RobotTrader's picture

Pretty crazy "buy the dip" action in CEF today.

Mon, 05/02/2011 - 12:01 | 1230037 Flakmeister
Flakmeister's picture

I took advantage of the gift...

1000 shares at a print of 22.60, about a 6% *discount* to NAV

Mon, 05/02/2011 - 12:07 | 1230074 SheepDog-One
SheepDog-One's picture

Better hope real hard that this phony paper keeps bouncing against the languishing US LOLlar!

Mon, 05/02/2011 - 12:39 | 1230269 Flakmeister
Flakmeister's picture

You are aware of what CEF is? It is probably the best pure PM exposure you can get in an eligible account. It also has been around since 1962

Mon, 05/02/2011 - 10:49 | 1229499 baby_BLYTHE
baby_BLYTHE's picture

When does the weak dollar and the inflation start to cause unemployment?

Since Inflation is so much worse than Deflation, why aren't we losing as close to as many jobs as were lost during 2008-2009?

Mon, 05/02/2011 - 10:52 | 1229522 the not so migh...
the not so mighty maximiza's picture

Valid question, I don't think they are counting people the same way like back in 2008.  Unjunked

Mon, 05/02/2011 - 10:56 | 1229528 bob_dabolina
bob_dabolina's picture

Chris Martenson did a great piece on how the government manipulates the unemployment #'s to make the numbers look good.

One number hard to fudge is the food stamp participation rate which is constantly probing all time highs at disgustingly high numbers. It portends a far grimmer image of the affairs of the U.S economy.

Also, you have to look at wages. If you do a 1-1 and replace a job where the individual is making $300,000 a year and replace that job with someone working at Mcdonalds for $7.25 an hour, would you call that an improvement?

Mon, 05/02/2011 - 10:51 | 1229535 falak pema
falak pema's picture

cos you're still benefitting from QE-viagra economy! Wait till economic viagra stops and Niagra falls will become lake Aral!

Mon, 05/02/2011 - 10:54 | 1229543 DeweyLeon
DeweyLeon's picture

There's not much left to trim.  The % in the workforce is back to 1980 levels now, I think.

Mon, 05/02/2011 - 10:52 | 1229545 Rynak
Rynak's picture

What inflation does mostly is to remove "wealth" from those holding money, and add "wealth" to those creating money (who may then give it to others... i.e. banks).... so, in the end, really not soo different to taxation.


Now, what exported commodity price inflation does to people.... well, just ask yourself the following: If good prices rise, do then wages adjust at the same speed upwards?


BTW: I was the one who accidentally junked you. I wanted to click on "reply", but accidentally hit "junk". Sorry!

Mon, 05/02/2011 - 10:57 | 1229572 Law97
Law97's picture

What inflation does mostly is to remove "wealth" from those holding money, and add "wealth" to those creating money (who may then give it to others... i.e. banks).... so, in the end, really not soo different to taxation.


Exactly.  Inflation without representation!  We have a private bank that has more power than Congress or the President to shift wealth at will.

Mon, 05/02/2011 - 12:46 | 1230315 glenlloyd
glenlloyd's picture

that's why it's commonly refered to as a 'stealth tax' because it robs you without actually affecting the nominal number of dollars you have, and that's why the population doesn't really understand how it's theft.

For every complaint I hear about prices going up I always try and emphasize that it's not that the prices are going up, it's that the value of what one dollar buys is going down. Once you can get people to recognize that it changes everything.

Mon, 05/02/2011 - 10:55 | 1229562 vote_libertaria...
vote_libertarian_party's picture

I sense the job losses in the large corporate private sector have mostly occured.  Not that they couldn't squeeze more but it seems that is to the bone.


I bet the next phase is more non Federal gvt job layoffs and a lot more small and medium size business failures.


State and local gvt budgets start their new years in 2 months and inflation is squeezing everybody else.

Mon, 05/02/2011 - 11:04 | 1229591 gordengeko
gordengeko's picture

I saw a sign at a local gas station yesterday that said "Permanent part-time needed".LOL

Mon, 05/02/2011 - 14:10 | 1230812 AGuy
AGuy's picture

The Weekly Unemployment figures are rising again. Although, In a real inflationary economy, unemployment falls as wages rise and people spend money since otherwise money is lost if not used soon.

However we are in a period of stagflation, were wages are flat to declining while prices are rising for non-discretionary items. For the past six to 12 months as prices rose, people managed to get by, by dipping into savings. if you look at the saving rate for Americans, it has been declining and has gone negitive. Also note the recent comment by Walmart CEO that Walmart customers are running out of money, so its very likely we will see economic contraction in the next 3 to 6 months.

I would expect that prices for oil will peak in the next 45 days as demand destruction kicks in. prices for other commodites food and PMS will probably lag the oil price correction as consumer still need to purchase food no matter what. PMs are more or less purchased by people with money (not the typical walmart shoppers) looking to preserve capital, and they probably won't change unless they are forced to. Once Demand destruction begins to take hold we will almost certianly seen another big job loss period as companies one again downsize, perhaps another repeat of the 2008\2009 correction. After that, Benny orders new printing pressures and starts running them 7/24 to re-inflate the economy with more stimulus (same with Congress, as elections are comming again soon, and will probably vote for more stimulus spending).

FWIW: I would expect oil prices remain volatile as the price of oil zig-zags from very high prices to low prices as demand destruction and supply declines work their way into the economy. Convential oil production peaked in 2005, and Convential + non-convential (tar sands, Gas Distillates, etc) peaked into 2008. Every time the economy rebounds, the price of oil will soar causing sudden demand destruction causing a rapid plunge in oil prices. This will continue to repeat until the system snaps (much like a worn out rubber band), resulting in breakdown of nations.



Mon, 05/02/2011 - 10:51 | 1229511 Robslob
Robslob's picture

All you need to know if you are stuck in the U.S.A. (same with Maples)

Silver Eagle 1 oz
Product details
USD $ 50.88 ea.; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; text-decoration: none; background-position: 2px 0px; background-repeat: no-repeat no-repeat; margin: 0px;">Only shippingoutside USA Quantity: units

Mon, 05/02/2011 - 10:50 | 1229521 Jreb
Jreb's picture

Math Man,

I read ZH - don't post. Posters here are to cynical to get to involved for me. I don't like to argue - mostly just read and think.

Have been reading your posts for months. Contrarian opinions are healthy - you provide them here and it creates a bit of balance but I think you may be fighting a losing battle my friend.

I read your post last night on the sudden drop in silver - you claimed it was a blown bubble but I think you are missing out on some key points that may in fact be driving silver and gold. Like massive government debt, money printing and so forth.

The world is no longer a happy place - not the place I knew as a kid. The biggest bubble in the room right now appears to be the USD and a host of other paper currencies. Not to say the silver market is not volatile and ugly at times - last nights actions can make a guy want to vomit - but I think you might be missing the bigger picture. Silver and gold are hedges against government insanity. People who speculate in them - the paper market esspecially - can and will get burned - but holding the metals as a hedge right now may be the smartest move in the room in spite of the risk.

The level the dollar is at right now is not nearly as signifigant as where it will be if the Fed and the US government do not wake up.

My question - when will you wake up? Do you care about what is happening to your country and your money? How do you live day to day and ignore the folly around you? I don't understand how you ignore the fundamentals of soverign debt, war, the degredation of individual liberty and all the other ingredients of the soup that is the collapse of empire. It baffles me. But then I am new to blogging - maybe you are really a troll? Maybe you are just here to poke people with a contrarian stick? Don't you care about what is happening to your country?

Mon, 05/02/2011 - 10:59 | 1229565 falak pema
falak pema's picture

I think that people are so angst they want to divert their attention to PM not only as monetary hedge but also as symbolic icon of soothe their visions of tomorrow...its time to hump the smooth round rump of the next golden PM bump like it were the last hill before the slide down to foggy bottoms...ask Osama he is already there...

Mon, 05/02/2011 - 11:25 | 1229743 Jreb
Jreb's picture

Maybe. I suspect in a world gone absolutely nuts where fear, uncertainty and doubt are king that people are looking for something real and tangible. Something honest. As thinking people many of us crave clarity and truth. Maybe PM's are a move towards something more honest in our world? I dunno. I don't have the answers about motive - as individuals everyone's version of motive - like happiness - is different. My hope is that the move into PM's is more than just a bunch of people speculating on getting richer and at least equal part a proleteriat move toward a more honest and freer world. Maybe I hope for too much. Time will tell.

Mon, 05/02/2011 - 11:58 | 1230018 gordengeko
gordengeko's picture

I guess we will also find out if the mayans were crackpots along with all the other ancient scripture that talks about 2012.

Mon, 05/02/2011 - 15:11 | 1230993 Hephasteus
Hephasteus's picture

Mayans are illuminati boogy man. If you want to find a sci fi parallel. They are akin to ancients or super wise but somehow dead and gone strawmen. Their dramatic presentation is known as the magical negro.

Though the magical negro can be asian or aborigine or native american. Magical negros tend to play some philosophical and martial arts role. Mayan is simply a philosphical adaptation and presentation of the magical negro. An excuse for it's meant to be and a lame it's going to turn out alright. It's tough to use intuition in these circumstances but I have a feeling a bunch of people are going to be taking tests of character. Sometimes you just gotta poke a mother with a stick.

Now if you want to take how this applies to people. Simply look at y2k and the dot com bust. It had a similar dynamic and was a massive money theft. Every stock that blew up then and then proceeded into some dark corner only to reappear lately is a part of that y2k theft. The mayan thing is simply a cover story for a bigger fraud. If you can make people afraid you can control their behavior and security and dominate them more easily.

I wonder what they used in the 20's. Oh the industrial revolution maturing same thing as the y2k thing as it was supposed to be a representation of a maturing taking off global changer.

Anyway the bullshit stories get boring. People are going to run to a form of proof and understanding that leaves very little wiggle room.


Mon, 05/02/2011 - 22:05 | 1232582 StychoKiller
StychoKiller's picture

To paraphrase Will Rogers:  "I'm not so much interested in the return ON my wealth as I am in the return OF my wealth."

Au & Ag are wealth insurance (against the burning/sinking FRN!), nothing more -- unless you wanna make necklaces or somethin'...

Mon, 05/02/2011 - 10:54 | 1229541 Rynak
Rynak's picture

What inflation does mostly is to remove "wealth" from those holding money, and add "wealth" to those creating money (who may then give it to others... i.e. banks).... so, in the end, really not soo different to taxation.


Now, what exported commodity price inflation does to people.... well, just ask yourself the following: If good prices rise, do then wages adjust at the same speed upwards?


BTW: I was the one who accidentally junked you. I wanted to click on "reply", but accidentally hit "junk". Sorry!

Mon, 05/02/2011 - 10:54 | 1229556 Beamerball
Beamerball's picture

Lots of reasons to put the US Dollar on your buy watch list, not sell.

Mon, 05/02/2011 - 11:03 | 1229587 DeweyLeon
DeweyLeon's picture

The only thing that backs fiat is psychology.  I see no change in that on the horizon that would save the dollar.

Americans have lost faith in thier government and themselves and I don't see it coming back.

Mon, 05/02/2011 - 11:43 | 1229890 Crack-up Boom
Crack-up Boom's picture

... and every time a fiat currency collapses, there are people who hold onto it until the bitter end.  If you choose that path, God bless.  But if you look at the fundamentals, the only thing holding up the USD at this point is credit inflation and normalcy bias.  Once people realize that Tinker Bell doesn't really come back to life when you clap, it's all over.  The USD isn't TBTF.  

Mon, 05/02/2011 - 10:59 | 1229578 OutLookingIn
OutLookingIn's picture

Not far to go!

Below 70.70 there be dragons! Chinese dragons!

Mon, 05/02/2011 - 11:04 | 1229592 Americant Expat
Americant Expat's picture


Mon, 05/02/2011 - 11:08 | 1229624 monopoly
monopoly's picture

Has anyone seen the "intelligent ones" this morning. You know, the ones telling us to sell our silver, gold, calling us idiots. Hmmmm.

Nothing has changed. Nothing.

Mon, 05/02/2011 - 22:08 | 1232585 StychoKiller
StychoKiller's picture

Excerpted from the Golden Jackass:

It is not complicated. Have they liquidated any big US banks??  Has any reform come for encouraging the return of US industry??  Has any regulatory reform been pursued for expanding business?? Have they stopped printing money to cover debt??  Has any reduction in USGovt deficits been realized??  The answer is a loud NO on all counts, which signals a continued bull market in precious metals.  They print money to cover bonds which raises the cost structure and thus works to remove active capital through the natural process of business shutdowns due to vanished profitability. Watch for job cuts from the pervasive cost shock and its powerful squeeze. Watch for even greater propaganda of economic recovery in supposed
business growth, which is almost all price inflation relabeled as growth!

Mon, 05/02/2011 - 11:06 | 1229627 fiftybagger
fiftybagger's picture

I love the smell of desperation in the morning!


Silver For The People



Mon, 05/02/2011 - 11:18 | 1229692 Ray1968
Ray1968's picture

Behold the resiliance of silver... the super-metal.

Mon, 05/02/2011 - 11:10 | 1229648 Silver Bug
Silver Bug's picture

Killing Osama, equals less than a 24hr USD rally, sad. The USD is a dead fish.

Mon, 05/02/2011 - 11:14 | 1229665 Phillips Capital
Phillips Capital's picture

CEF continues to be at a great discount to the gold/silver holdings.

Mon, 05/02/2011 - 11:15 | 1229685 TIMMAYYY
TIMMAYYY's picture

here is a question...has anyone called up a bookies and question the probability of silver crossing $100...cause I recon the rates they would give would make it a far more...impressive bet than buying silver...


just a thought?

Mon, 05/02/2011 - 12:44 | 1230302 cxl9
cxl9's picture

If only there were a market where people could place real money bets on the future price of silver and other commodities. That would be great..

Mon, 05/02/2011 - 22:10 | 1232590 StychoKiller
StychoKiller's picture

Casino Chips = FRNs != REAL money.

Mon, 05/02/2011 - 11:15 | 1229686 TideFighter
TideFighter's picture

DJIA will hit 13k today.

Mon, 05/02/2011 - 11:28 | 1229772 baby_BLYTHE
baby_BLYTHE's picture

unbelivable that the market has nearly recovered all of its gains  since the "greatest collapse" in history!

I remember calling my congressman during the Bernanke reappointment telling him to vote "NO" on the reappointment. He told me if he did that the stock market would collapse!

Mon, 05/02/2011 - 11:50 | 1229959 slewie the pi-rat
slewie the pi-rat's picture

people borrowed their margin money from the chinese guys.

Mon, 05/02/2011 - 15:30 | 1231163 falak pema
falak pema's picture

China keeps the unsinkable Molly Brown oligarchy afloat even as the Titanic sinks!

Mon, 05/02/2011 - 11:18 | 1229706 TruthInSunshine
TruthInSunshine's picture

Let the dollar break below 70, aka technical shit storm, and we'll see how hungry loyal dogs really are, to crib a line from a popular media.

Maybe The Bernank wants an all out U.S. currency crisis, as the pain on the part of U.S. consumers might finally get them to accept an international currency similar to the 'Bancor' that Keynes wrote of and desired so many decades agao.

Mon, 05/02/2011 - 11:25 | 1229774 Daedalus
Daedalus's picture

Here's how I see it:

OBL assasinated => Obama popularity up

=> Less pressure on Democrats to resolve deficit

=> Less confidence from bond markets

=> Increased bond yields

=> Increased QE or other inflationary measures

=> Increase revulsion of USD by investors (off-shore or domestic)

=> USD weakening


Mon, 05/02/2011 - 11:29 | 1229808 BentNick
BentNick's picture

Love it, I can see it in my mind's eye, Obama trying to figure out how they can divert the worlds attention the day the dollar crashes to new lows.... Someone at the meetings throws out the idea "we could kill of Bin Laden, that should take the top story for a few days, we can even throw out a conflicting story or two to keep them talking"



Mon, 05/02/2011 - 11:32 | 1229825 RobotTrader
RobotTrader's picture

Biggest, fastest collapse of the mining shares since the 2008 stock market crash.

Ratio traders made more money, faster than even the subprime shorters in 2008.

Mon, 05/02/2011 - 11:45 | 1229903 tmosley
tmosley's picture

lol, paper is what paper does.

Mon, 05/02/2011 - 12:12 | 1230091 SheepDog-One
SheepDog-One's picture

I told ya to stay away from that paper garbage Robo. Now look at you.

Mon, 05/02/2011 - 12:45 | 1230308 Thunder Dome
Thunder Dome's picture

Mining shares = FRNs

Mon, 05/02/2011 - 11:32 | 1229827 PulauHantu29
PulauHantu29's picture

A year (or two) ago, some Japanese bank (?Sumitomo) said if the dollar drops to 72, conditions would deteriorate rapidly and we would most likely see an imminent and sudden 20% in the dollar.

Anyone have news or insight into this reasoning?

Mon, 05/02/2011 - 12:10 | 1230089 Hephasteus
Hephasteus's picture

Bad dollar bad dollar. What ya gonna do.

What ya gonna do when 72 comes for you.

It'll go to 66 in days I think.

61 in days after that.

Then it's test the waters. How much you pay for this?

Mon, 05/02/2011 - 12:12 | 1230110 slewie the pi-rat
slewie the pi-rat's picture

hey, P_H29, i think it is just the technical thing about not a whole lotta freakin support below 72.  in that bullshit pressconf last week, the chairzelbub came right out and said he'd been helping the japanese print print print.

never have two central banksters whacked so many linen and cotton trees as these two assholes.

but, there was that disaster, and we still have the 4-banger raging, there, and besides, the damned chinese started saying they were gonna sell our paper.  so, we're ready for anything, now.  our economies suck, and the dollar is our golden parachute.

i can't believe i wrote that.

Mon, 05/02/2011 - 11:33 | 1229831 TruthInSunshine
TruthInSunshine's picture

It only works as distraction until gasoline hits $4.30, then $4.75, then $5.00 and beyond.

The dangerous thing about the minds of the sheeple, from a governance standpoint, is that gasoline prices drive everything else.

If our friends in OPEC won't play ball by subsidizing Bernanke's trashing of the US Dollar, damnit, heads are gonna' roll!

Mon, 05/02/2011 - 12:32 | 1230199 Broomer
Broomer's picture

Speaking of rolling, did you ever watch Rollover?

Might be this run on PMs is being helped by something like that...

Mon, 05/02/2011 - 15:31 | 1231171 SoNH80
SoNH80's picture

Gasoline, etc. prices are critical.  People can almost be fooled into thinking that grocery bills aren't going up, but you can't wish away those big "389.9/10" signs along every major highway....

Mon, 05/02/2011 - 11:37 | 1229838 Dr. Impossible
Dr. Impossible's picture

hmmm...with this OBAMACARE..questionable constitional mandate issue, and i understand that the courts maybe having issue with forcing liability onto the people to pay for this form of private care....couldn't this situation be compared to being forced into doing business with the FED and/or the IRS in the form of FRN's?

Mon, 05/02/2011 - 11:59 | 1229983 plocequ1
plocequ1's picture

I will pay my $695 like a good troll. I will not get health care. I instructed my wife to perform the  Chief - Randall  Patrick  Mcmurphy pillow procedure when i am on my death bed.

Mon, 05/02/2011 - 11:51 | 1229948 Re-Discovery
Re-Discovery's picture

Right at the 46.7 key support (low end of channel.)  Bad guys have to try a takedown of this support to take from buy to neutral.

Mon, 05/02/2011 - 11:56 | 1229988 Tense INDIAN
Mon, 05/02/2011 - 11:57 | 1229990 drivenZ
drivenZ's picture

does anyone know how to get that dollar adjusted return chart for SPY on BBG terminal that tyler posted the other day? 

that was good stuff.

Mon, 05/02/2011 - 11:59 | 1230024 gabeh73
gabeh73's picture

so the guy lives off his wifes inheritnace while drinking and daytrading at home...sounds much smarter than wonder he is short the dollar.

Mon, 05/02/2011 - 12:28 | 1230175 tbonetmoney
tbonetmoney's picture

I want to own the CNY. Are the exchange traded currency products CNY and CYB the best way to get exposure to the next reserve currency?

Mon, 05/02/2011 - 12:56 | 1230363 drivenZ
drivenZ's picture

you can open a CNY account in the US at a few select locations...but there are restrictions on amounts and I believe you have to convert it back to dollars for withdraws 

Mon, 05/02/2011 - 13:48 | 1230651 Saxxon
Saxxon's picture

DrivenZ; I believe that is 1-2 HSBC or Bank of China outlets in NYC?

Go to China and open a Yuan account.  Bring your passport to the bank.

Mon, 05/02/2011 - 14:34 | 1230921 tbonetmoney
tbonetmoney's picture

The BOC NYC Chinatown branch has RMB CDs and saving accounts. To open an account must be done in person. This is a problem for me since I am not a resident of New York. Everbank offers an access deposit with 0% APY and a conversion rate within 1% of current market rate. The CYB etf may be my best option currently, if anyone knows how I can open a yuan saving account or CD from home I would appreciate the information.

Mon, 05/02/2011 - 22:15 | 1232600 StychoKiller
StychoKiller's picture

Cain't ya just bribe the New York border guards? :>D

Mon, 05/02/2011 - 13:01 | 1230410 SilverDoctors
SilverDoctors's picture



Mon, 05/02/2011 - 15:19 | 1231113 Hephasteus
Hephasteus's picture

What's the saying. It's better to ask forgiveness than it is to ask permission.

I think it's best to be careful who gets lit. Cause some bastards won't quit.

Mon, 05/02/2011 - 13:46 | 1230654 AldoHux_IV
AldoHux_IV's picture

We don't need no stinking reserve currency and we sure as hell don't need any more manipulated system to tell us how to run our economy.

Mon, 05/02/2011 - 15:39 | 1231194 ivars
ivars's picture

Dollar plummeting does not seem to have any positive effect on silver...

Here we go again. Silver is crashing to 30, during May: (the chart is so old and bit off in timing,  its already boring, but its still valid):

Mon, 05/02/2011 - 16:13 | 1231368 falak pema
falak pema's picture

If you paid the most beautiful and sweet harlot for a night on the half moon and she asked for prepayment in USD you would feel so much better at wake up time...the croissants, the scrambled eggs, crisp toast and orange marmalade, steaming black coffee  would feel divine when paid in devalued green backs...You'd want a second night of the same...and hope the green back would be true to its backwardation form...while you fandangoed the starry nights in silken sheets.

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