Dollar: 0, S&P (not Dow): 36,000, Gold: infinity. For an obit of the US middle class look at any streaming ticker. For everything else, there is the Fed Chairman.
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on Mon, 11/23/2009 - 09:26
#139249
Unsavory.
on Mon, 11/23/2009 - 09:26
#139250
Gold playing monopoly with paper. I think it just bought park place.
on Mon, 11/23/2009 - 09:29
#139256
Ny January you'll be able to use 3 ouncs of gold to buy a house. Equilibrium at last.
on Mon, 11/23/2009 - 10:10
#139308
I'm not so sure. The Gold market has all the feelings that were there at the height of the dot-com and housing bubbles right now.
on Mon, 11/23/2009 - 11:23
#139410
Your right but this time its supported by the unsound fundamentals of politics in the fed.
If dollars are worth less then gold is worth more and so long as thats likely to continue theres no reason to doubt the rises will continue long term
ps. I need a calc to answer the captcha lol
on Mon, 11/23/2009 - 11:44
#139437
To me, that sounds like "this time it's different!".
There's a book out about the significance of that phrase.
on Mon, 11/23/2009 - 13:02
#139527
No, this time is the same, that is, the same as the endgame of every other fiat currency that has ever existed. This is a dollar event, not a gold event. When you think of gold as money, it makes sense. We're in a phase transition here,and it will be a violent changeover when it happens.
on Mon, 11/23/2009 - 14:17
#139626
forget it...if someone reading ZH doesn't get it by now, they probably won't until it's too late.
on Mon, 11/23/2009 - 09:28
#139253
Curtesy of printer in chief, Shalom Bernanke
on Mon, 11/23/2009 - 09:29
#139254
Since the gold market is not manipulated, watch for a run to $1200 starting at 11:00 AM EDT.
What is that string of ambulances and paramedics doing outside the CRIMEX, with all of those "shorty" stretchers?
Why is Tiny Turd Tungsten Tim entering the Treasury Department with all of those shoe boxes?
on Mon, 11/23/2009 - 10:31
#139334
LSH wrote.."Why is Tiny Turd Tungsten Tim "
+100
LMAO
on Mon, 11/23/2009 - 09:30
#139258
Just another day in Fed's "DAILY DOLLAR SMACKDOWN" program. as long as Bernanke keeps it up, our savers keep getting shot in the head (or fleeing the country - figuratively in their investments). My humble opinion is that it would not take much for the Fed to introduce some "uncertainty" into the FX market (or risky markets like equities). Even jawboning followed by a 25bp hike (which would do no harm to the economy). But they chose NOT to do so. That tells me that they WANT to destroy the dollar.
ReturnFreeRisk
on Mon, 11/23/2009 - 09:34
#139261
I don't understand why Oil isn't approaching $100 at this point? Increased demand speculations on rosy economic assumptions (wrong as they may be) + weaker dollar = Oil goes up.
on Mon, 11/23/2009 - 09:38
#139264
Because need is driving not greed. Need wants 67 to 80. I am surprised its not high 70's.
on Mon, 11/23/2009 - 09:46
#139267
While Gold is somewhat meaningful, Oil at $100 would scare the average plebe into believing inflation is real.
on Mon, 11/23/2009 - 09:49
#139271
Yep, the squid is under orders to keep oil prices down. Too many bad headlines if it jumps up.
on Mon, 11/23/2009 - 09:56
#139281
An extenuated apology.
on Mon, 11/23/2009 - 10:05
#139302
Because no one can take delivery of it.
on Mon, 11/23/2009 - 12:12
#139484
"I don't understand why Oil isn't approaching $100 at this point? Increased demand speculations on rosy economic assumptions (wrong as they may be) + weaker dollar = Oil goes up"
Because the western economies are turning to burnt toast and the real demand for oil is collapsing.
on Mon, 11/23/2009 - 09:46
#139268
Holy crap, everything is going berserk!
on Mon, 11/23/2009 - 09:48
#139269
DXY index breaking under 75 again. It's like watching a drowning man...how many times will he come up for air before disappearing forever?
on Mon, 11/23/2009 - 09:56
#139282
Corpses float, don't ya know?
on Mon, 11/23/2009 - 10:28
#139329
Everybody talks about a critical support level. I don't see it. It looks to me like a well controlled descent. I'm not saying it's good policy, but I do think this is going exactly according to the playbook.
When the proles get an idea of how that playbook is designed to screw them, I wonder if they'll be pissed off or too deep in the Matrix to notice or care.
on Mon, 11/23/2009 - 11:47
#139440
DXY is not a good measure of anything, except itself. The specifications are below and don't measure US trade, currency flows or anything else. It omits the actual trade levels like with Canada & Mexico which are much larger than in the "index," and also ignors all of Asia.
But it is a fine index which can be manipulated easily.
The U.S. Dollar Index® is computed using a trade-weighted geometric average of six currencies. The six currencies and their trade weights are: Euro
57.6 %
Japan/yen
13.6 %
UK/pound
11.9 %
Canada/dollar
9.1 %
Sweden/krona
4.2 %
Switzerland/franc
3.6 %
on Mon, 11/23/2009 - 09:49
#139270
A $80.00+ day would get people's attention. Not there yet.
on Mon, 11/23/2009 - 09:54
#139276
We just idled a few more refineries because demand is so horrible....but thats bullish......ok I get it. $1200 gold because the U.S. monetary system is about to collapse = S&P 1200....dang this is easy.
Just listened to some idiot on CNBC try to tell me that we might have to adjust 2010 GDP down from an normalized recovery of 7-8% to 3-4% because we have a few headwinds. I got your headwind right here buddy.
on Mon, 11/23/2009 - 09:57
#139283
C'mon, kiddies, let's play for real: predictions on Gold:Dow parity (both measured in $US), when and at what numerological configuration?
Is everybody in for 3,333 in 3Q 2013? Or what?
As Romeo Void said, 'Never Say Never'....
on Mon, 11/23/2009 - 09:59
#139286
If Ben keeps printing we will reach DOW parity quite a bit higher than that....and what's to stop him?
on Mon, 11/23/2009 - 10:02
#139293
I know it's always mentioned here in some context or other, but this really is a sorry state of affairs:
Equities have looked tired now for the better part of 2 weeks and on a Monday following OpEx, there really wasn't much to keep them from pulling back to test for real support. Then, voila, Fed speak, crashing Dollar, and 2% rallies all around.
Not really a market anymore.
on Mon, 11/23/2009 - 10:08
#139305
the fact gold is going through the roof and oil stays pretty flat is only because the oil demand hasn't really picked up yet. I think the worst nightmare would become if the economy would indeed recover before any tarp has been (like they will ever :) ) pulled out of the system
on Mon, 11/23/2009 - 10:12
#139311
I hope nobody here was foolish enough to short Gold (except, of course, Prechterites). Idiot goldbugs such as yours truly did try to warn everybody you know.
on Mon, 11/23/2009 - 10:13
#139312
Sure hope that Open Interest in the Dec GC contract is not expecting actual deliver of the non-existent physical 1000 ounce bars from the COMEX... I mean this is all just on paper right ??!!!
Anyone remember that little old lady with her "Show me the Beef" TV commercials??? Gonna be a line outside the Comex in a couple weeks... "Show me the Gold !!!"
on Mon, 11/23/2009 - 10:19
#139318
This whole "market" is a joke. The govt has literally stepped in to every program that created the bubble...everyday it is a new bubble building program and complete denial of the utter disaster facing the economy.
Check out the latest 100% financing option for mortgages:
And trust me it is getting used as I just heard about this on Friday during a conversation with someone in the business.
http://www.cnbc.com/id/34067149
on Mon, 11/23/2009 - 10:32
#139335
In a deleveraging one has three choices:
The reinflation plan has always been to relever wherever possbile, backed by a credible threat of printing. Low interest rates facilitates re-leveraging, and QE demonstrates willingness to print if necessary. Simple and direct. Even Prechter will catch on eventually.
If releveraging doesn't catch on (Carry Trade!) then Bernanke will print the dollar to oblivion.
on Mon, 11/23/2009 - 10:43
#139340
I guess I will have to embrace this concept. This is something I really cannot come to grips with how everyone wants to trust the very organization that got us into this to somehow make sure we make every decision with swiss-watch precision to exit perfectly with no inflation and no negative effects from re-levering onto the taxpayer.
on Mon, 11/23/2009 - 11:21
#139406
I certainly do not "trust" them, I am merely saying this is obviously the plan. I cannot trust anyone or any organization foolish enough to assert they have the knowledge or skill to manage an economy.
on Mon, 11/23/2009 - 10:47
#139358
Deflation is a mathematical myth. It only occurs for very short periods under a fiat currency system until it's forcibly revalued. Did we have deflation during the great depression? Before or after he gold grab and 60% dollar devalutation?
on Mon, 11/23/2009 - 10:21
#139323
1 advice- buy USD
on Mon, 11/23/2009 - 10:26
#139326
2 advices for the next few weeks
1st - buy USD,
2nd sell everything else
on Mon, 11/23/2009 - 11:26
#139412
Might work on a very short horizon, if and when the carry trades go badly. Long term, one would have to be foolish to hold USD. Unless, of course, you're running out of Charmin.
on Mon, 11/23/2009 - 12:12
#139485
In a volatile market i only take short
term positions. re USD it is
valued relative to other
currencies. How sure are we
that EURo countries are
performing better? every1 is
looking at the U.S now and
somewhere in europe a
country is defaulting or
at war..etc. Besides, USD
is still the reserv currency
on Mon, 11/23/2009 - 11:01
#139374
I believe in Banana Ben. He was right on the money in regard with the "subprime problem". Remember? 50-100 billion. The fact he didn't mention "daily" doesn't take anything away from his amazing understanding of how the market works.
My advice to BBB: Shave your beard, buy some women's clothing change your name to John Low and make sure Goldman Boys are not going to leave you behind at the airport. Good luck!
on Mon, 11/23/2009 - 11:02
#139377
GG
have to say i'm a massive skeptic of gold as a fundamental store of value. But i got long cos of guys like you on this site pointing out the glaringly obvious bull market that was just getting started a few months ago...We still have a long way to go. All you need to know is EM central banks are buying gold, and will be buying gold for the forseeable future. And they have a LOT of money to put to work. To paraphrase Churchill; Gold is the worst form of reserve asset...except for all the others.
So thanks i guess....is what im trying to say. Also...i'm waiting for a NASDAQ / crude - esque bubble spike to get short gold...that will be another cracking trade when the time comes. god knows when it will be though.
on Mon, 11/23/2009 - 11:11
#139393
Hephasteus you are 100% right. I lived it.
on Mon, 11/23/2009 - 11:24
#139411
Classic.
on Mon, 11/23/2009 - 11:30
#139418
wow, with 2 hours of trading in we got some smokin' vols....almost 1.2 billion on the spx LOL!
on Mon, 11/23/2009 - 11:37
#139427
My USD indicators are still giving bullish warnings and i'm expecting a rally when the Dow resumes it's downtrend.
http://www.zerohedge.com/forum/market-outlook-0
on Mon, 11/23/2009 - 11:43
#139435
But if you look at http://finance.yahoo.com/, the price of gold stays at 1146.
Isn't that something weird?
on Mon, 11/23/2009 - 11:56
#139456
Seems like the gold bears are really becoming an endangered species, at least on the blogs. I've been long more or less for 7 years now, and nobody thinks I'm crazy anymore when I tell them. The wife recently asked me when I'm going to sell hers. Still isn't on most people's radar. When somebody brings it up in a social situation(unprovoked) I'm liquidating.
on Mon, 11/23/2009 - 12:52
#139517
im slightly confused - thought Durden was a near term dollar bull.
on Mon, 11/23/2009 - 13:29
#139562
Real Simple - the Day the US Gov. is no longer a source of "stability" - GOLD goes UP.
Either way you look at it - US Gov,. expansion rationalized by a US economic contraction - knowing Gov.s do not produce / allocate / innovate [w/o nationalism or common enemy]- only two outcomes can exist - one conflict or Gov. expansion - still further....
on Mon, 11/23/2009 - 13:43
#139587
once the dollar trade "unravels" (strength in the dollar)
this sucker might unload faster than boy george at a sex convention.
We almost saw the dxy futures crushed last week.
ooooof. I think it's going to be a wild ride.