Simon Black: "The Market Is Telling Us That The Dollar Is Finished"

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Mon, 02/28/2011 - 13:48 | 1004245 Turd Ferguson
Turd Ferguson's picture

The chart is telling you that, too, Simon.

Mon, 02/28/2011 - 13:55 | 1004274 egdeh orez
egdeh orez's picture

Calls for "Dollar is dead" is premature.

Dollar is dead only if the fed (and the banksters) want it to die.  If the fed wants a strong dollar, it has an ace up its sleeve.  All it has to do is remove the swaps with the European banks and the dollar would surge.  Of course, this would be accompanied by utter chaos in the financial world.

Mon, 02/28/2011 - 14:02 | 1004297 Burnbright
Burnbright's picture

It is true that the dollar top calling is premature but the FED has no control at this point. Anything Ben does at this point is going to destroy the U.S economy.

Mon, 02/28/2011 - 14:07 | 1004307 Shell Game
Shell Game's picture

True that.  It is more like the dollar is dead but it just doesn't know it yet, a zombie currency if you will. 

Mon, 02/28/2011 - 14:06 | 1004309 surfsk8sno
surfsk8sno's picture

The dollar is dead when the Asians, and Arabs want it to die

Mon, 02/28/2011 - 14:16 | 1004336 Burnbright
Burnbright's picture

Bingo, only trouble is that all the individuals within these governments have been benefiting directly by being bought out essentially at the expense of their own populations. Whole world is smoking while the dollar burns, the masses can't suffer any more loss. We have reached the threshold.

Either governments around the globe dump the dollar or they will be disposed.

Mon, 02/28/2011 - 14:22 | 1004351 MolotovCockhead
MolotovCockhead's picture

Calls for "Dollar is dead" is premature.

No, it's not's on intravenous drips and Ben Bernanke is celebrating!!

Mon, 02/28/2011 - 14:26 | 1004368 A Man without Q...
A Man without Qualities's picture

"Dollar is dead only if the fed (and the banksters) want it to die.."

This is the nuance most Dollar bears fail to understand.  The global financial system is inherently unstable owing to the tendency to borrow short term and lend longer term, to earn the easy money from the carry.  The Fed controls short term lending rates and quantities, so the Fed and the US banks can pull the rug out from under the feet of the market anytime they want (of course, this is mutually assured destruction.)  

Mon, 02/28/2011 - 14:30 | 1004380 piceridu
piceridu's picture


If you knew you were going to die soon and you had one month to prepare. Let’s say you had to prepare a vault with a time lock that would only open 10 years from the date of your death. Let’s say you had 2 million dollars in 100 dollar bills and what you left in the vault was solely for your 2 young children…. But you had a choice to put the U.S. dollars in the vault, or convert them into Swiss Francs, or any other paper currency from around the world or 1,400 ounces of gold. What would you put in the vault?


Mon, 02/28/2011 - 15:56 | 1004646 Montecarlo
Montecarlo's picture

Clearly you would choose Gold and Silver.

Mon, 02/28/2011 - 21:09 | 1005573 Nobody special
Nobody special's picture

Ain't that the best way to put it.  You ever considered selling treasuries?  /sarc

Mon, 02/28/2011 - 22:40 | 1005771 Dooud
Dooud's picture

The only thing you could be "certain" would have positive value would be the gold. There is a risk that "any" current fiat currency may not even exist. This is a good question because it cuts to the essential value of gold. A poor second choice would be blue chip stock, but its hard to pick any which are certain to survive AND outperform gold in the next 10 years.


Tue, 03/01/2011 - 08:30 | 1006465 XPolemic
XPolemic's picture

Personally I would put seeds, plus a little essay explaining how all the great fortunes of the world have been made due to the great stupidity of the average person.

Mon, 02/28/2011 - 14:38 | 1004402 jus_lite_reading
jus_lite_reading's picture

I concur. Although the dollar is on its way out eventually, that day is not today. The Euro will crash and burn first, with such suddeness, that even Dr. Deficit himself will be calling up Axel Weber for answers.

Once the liquidity swaps with the ECB end, the EU will descend into chaos and the world will follow. Either that, or WWIII. Pick your poison.

Mon, 02/28/2011 - 15:07 | 1004505 Imminent Crucible
Imminent Crucible's picture

"All it has to do is remove the swaps with the European banks and the dollar would surge"

You misunderstood the purpose of the dollar swap lines.  They were not instituted to cheapen dollars in Euro markets. They were put in place to provide dollar liquidity to support Treasury purchases by Euro central banks.

How do you think that the U.K. was able to double its U.S. T-bond holdings while in the midst of a govt debt crisis that requires them to lay off 20% of public-sector employees?

Terminate the dollar swap lines and the dollar collapses.

Mon, 02/28/2011 - 15:26 | 1004572 egdeh orez
egdeh orez's picture

This is one possible, but unlikely, outcome.

Think back to '08... dollar liquidity was non-existent... dollar was going through the roof... european banks were about to go belly-up... YET, everybody was buying Treasuries because this was the flight to safety play.  The dollar swap saves the euro banks and lightens the dollar/liquidity crunch.

Mon, 02/28/2011 - 16:10 | 1004698 ConfusedIdiot
ConfusedIdiot's picture

Agreed EO. Odd your junking as the swap lines are as reported by TD in ZH. Need only look at the swap line carried with Mex to see how this is being played. Regards CI.


Fed Extends Swap Lines With ECB, Other Central Banks

December 22, 2010, 8:17 AM EST

Mon, 02/28/2011 - 17:57 | 1005075 malek
malek's picture

You sound like The Bernank "I could raise interest rates within 15 minutes."

Yeah, yeah. But it will never happen.

Mon, 02/28/2011 - 14:10 | 1004317 Pladizow
Pladizow's picture

The death of the $ is the desired outcome.

You cant have a NWO with a super power in it.

Mon, 02/28/2011 - 14:37 | 1004401 Confuchius
Confuchius's picture


What you say is true.

Add to that the 600 quadrillion of "derivatives" clutched sweatily by most of the world's banks and you have the necessary ingredients for an IED to end all IEDs.

Best to stand back and view the spectacle from the helm of your vessel, safely at sea with a year's provisions...

Mon, 02/28/2011 - 14:42 | 1004417 EscapeKey
EscapeKey's picture

Derivatives: $1qn.

Net notional: ~2%

Net notional of derivatives: $20tn.

Not that $20tn is a walk in the park, but please stop parrotting those ridiculous Max Keiser figures.

Mon, 02/28/2011 - 15:39 | 1004609 mick_richfield
mick_richfield's picture

Total Derivatives:                                 $1 quadrillion

Net notional value of Derivatives:        $20 trillion

Current value of All Investable Silver:  $21 billion

Popcorn:                                              Priceless



Fed delenda est.

Tue, 03/01/2011 - 01:38 | 1006195 Joseph Jones
Joseph Jones's picture

I agree: NWO requires no super power in it...they intended to destroy the USA all along. 

Mon, 02/28/2011 - 18:03 | 1005093 DeeDeeTwo
DeeDeeTwo's picture

What nonsense. "Flight to safety" happens when the stock market tanks. The stock market = summer 2007. When it finally collapses... USD will soar.

Mon, 02/28/2011 - 21:31 | 1005631 akak
akak's picture

Good luck with fighting the last war, General Petain.

Mon, 02/28/2011 - 13:51 | 1004256 Shell Game
Shell Game's picture


Mon, 02/28/2011 - 13:51 | 1004257 the rookie cynic
the rookie cynic's picture

Posted this on another article but it's apropos here as well:

It would appear that the dollar is no longer a flight to safety. If this were 10-20 years ago, these Middle East conflagrations would have pushed capital out of equities and into US treasuries and cash dollars. Dollar weakness on the heels of global "risk-off" conditions is a harbinger of further declines.  Add the fact that the dollar index just measures the dollar vs. other fiat currencies (and not hard assets) and you realize that the days of the dollar as reserve currency are numbered. It could take 5-10 years to roll out SDRs en masse, but that day is coming if the NWO and global banking cartel gets their way.

Mon, 02/28/2011 - 13:52 | 1004261 redpill
redpill's picture

10-20 years ago?  More like *2* years ago.

Mon, 02/28/2011 - 13:59 | 1004283 unwashedmass
unwashedmass's picture


you can see this happening now. the euro is tanking but gold is holding steady and edging higher.

silver, JPM is sitting on it, barely holding it under 34......

we're gonna see these things become the "go to" in the flight to safety. you have to be brain dead to "flee to the dollar" for safety now...

Mon, 02/28/2011 - 14:17 | 1004342 the rookie cynic
the rookie cynic's picture

Good point. Black swans seem to be flying to safety of different climes since as recently as 2 years ago.

Mon, 02/28/2011 - 14:28 | 1004378 MolotovCockhead
MolotovCockhead's picture

Not too many years ago, when there's minor unrest in the middle east, you see the share market tumble world wide and the dollar rally but now the reverse is true. I think the dollar is sick!

Is it the new normal or are we seeing the unraveling of the Great Keynesian Experiment?! Don't care what the rest think....I am getting physical!

Mon, 02/28/2011 - 13:54 | 1004258 SilverRhino
SilverRhino's picture

Silver just broke 34.00 or at least is kissing it.

It is simply BECAUSE you cannot eat gold, cannot fill your gas tank with gold, etc. that governments will be more concerned about regulating high oil, wheat, and soy prices. If gold has no real benefit to the masses, the political consequences of high gold prices are less significant.

Is this man high or just incredibly foolish?  There's not a single sole proprietor / non-corporate business owner that I know that will NOT take PM's for services / goods.

Mon, 02/28/2011 - 13:54 | 1004270 Turd Ferguson
Mon, 02/28/2011 - 14:04 | 1004304 Harmonious_Diss...
Harmonious_Dissonance's picture

Giddy-up, shiny!

Mon, 02/28/2011 - 14:31 | 1004383 sunkeye
sunkeye's picture

luv it


Mon, 02/28/2011 - 14:22 | 1004350 Bob
Bob's picture


Mon, 02/28/2011 - 14:23 | 1004359 Bob
Bob's picture

Thanks for the link, Turd.  I'm betting we don't see 32.5 again for a very long time.

Mon, 02/28/2011 - 14:24 | 1004366 purplefrog
purplefrog's picture

I don't know of a good place to put this questions, but what obstacles do I face taking my PMs to Mexico?


Mon, 02/28/2011 - 15:02 | 1004481 Harmonious_Diss...
Mon, 02/28/2011 - 16:22 | 1004745 ConfusedIdiot
ConfusedIdiot's picture

Hi Frog. I live in Mex and haul PM back and forth in my back pack. Going in ain't the issue. It's coming back to US of A you  got to be on record. If you are driving just hit the no declare lane and keep trucking. If flying write "lots of  silver dollars and gold coins - face value less than $10k". In Mex City Aduana will ask to see some but your listing means no problemo. In BJX aduana never looks as long as listed as I stated above. Reason is in Espagnol "less than 10k" fits the requirement and Aduana never exceeds the requirement - very bureaucratic down there.

Mon, 02/28/2011 - 14:06 | 1004306 velobabe
velobabe's picture

yeah my new found bro, walter, over @ Vanatta. sign was old and wore.

N O  C R E D I T   C A R D s

he will take silver coin. plus i told him the whole gov ponzi scam and he said he just read about it. i wised some people up this bright and beautiful AM.

he is going to buy some

silver coin, bitches†

Mon, 02/28/2011 - 14:10 | 1004320 NotApplicable
NotApplicable's picture

That's not his point. His point is that gold is a commodity that we do not depend upon to sustain life, so its price run is less of a consequence to a government "in charge" of things.

Mon, 02/28/2011 - 15:05 | 1004495 Ignatius
Ignatius's picture

+ 55,000

So few seem to get this.  Looks to be only about 1 in 50 herabouts.

"The road will seem so straight and fair to travel, you will kick yourself for stumbling through the brambles for so long, and wonder at their neighbors who stll can't see the path, though it is truly a freeway."  (Aristotle, courtesy of FOFOA)

But I repeat myself....

Mon, 02/28/2011 - 14:13 | 1004326 johnQpublic
johnQpublic's picture

i used to accept silver pre 64 and food for trade or barter at my autoshop

it actually started with a woman who made the best bread you've ever had,

and the girl who owned the health food store

bartered services with a doctor and a chiropracteur,landscaper,home improvement guy also

almost forgot the dog groomer,jewelry store owner and property lawyer, and a real estate broker too

win win for all involved

Mon, 02/28/2011 - 14:19 | 1004346 Burnbright
Burnbright's picture

Nice, I hate taxes.

Mon, 02/28/2011 - 14:52 | 1004449 MachoMan
MachoMan's picture

Used to?  Bartering is a mainstay of american small business...  when margins are compressed even more, expect more bartering...  I think you are going to see a return to your old ways...  and you won't be alone.

Mon, 02/28/2011 - 14:14 | 1004330 augmister
augmister's picture

When it all blows up, so will your precious shiny shiny.  In a Mad Max world, muscle and lead rule.  Get over it!

Mon, 02/28/2011 - 14:40 | 1004411 jus_lite_reading
jus_lite_reading's picture

Mad Max world will be the eventual outcome but I strongly believe that before that occurs, we will need some common exchange. Further, when humanity picks up the pieces, silver and gold will be the standard forever.

Mon, 02/28/2011 - 16:04 | 1004671 akak
akak's picture

Yes, of course augmister, there are two and only two possible futures: an infinite continuation of the status-quo, or else Armageddon.  How foolish of me to think anything else was conceivable or possible.

"Muscle and lead", huh?  I think you have been watching too many Mad Max movies.

Mon, 02/28/2011 - 16:38 | 1004802 Mike7.62
Mike7.62's picture

Really? I wonder why the Roman denarii and solidi were still valued as money hundreds of years after the fall of the Western Empire. People trade, no matter how bad things get, and PM's facilitate that trade.


As to muscle and lead ruling, high velocity cupronickel rules over any amount of unarmored muscle, as per Sam Colt's dictum, and those holding PM's usually have more than sufficient amounts of the former to deal with the latter, especially those who are muscle from the neck up. People trying to steal from others are looters, and will get a looters fate.

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