The overnight action in Gold and the USD index not to mention yyesterday's action has me rivited. The dollar is melting,melting,melting. Can the Fed cut. and risk a total collapse of the dollar. Can they not cut and watch the financial system collapse. Not the cutting really matters. The presses are running red,hot or I say the electrons, buying worthless mortgage paper at face value, perhaps by the hundreds of billionns. The ultimate problem is that the derivitive market is over 400 trillion. dollars. If just 10 percent of that requires monetization, the world money supply will more than double overnight. Very scary.
Maybe the Wizard can save us. Or maybe we will just have to follow the Yellow Brick road.
I have an idea that can save us. We should all buy houses at the present average selling price with a 0%, no-doc, interest only, negative amortization mortgage. Since housing prices never come down, we'll all become millionaires inside a year or two. It can't fail, I saw it on Cramer!
Cheers,
Brian
Derek Jensen <derekj72@...> wrote: Phil: That's the NOTIONAL value. No way 10% of it requires monetization.
I agree with you that the Fed is jammed as you describe. Only risk to gold I see is continued dishoarding by the CBs, and that cant go on forever.
Wow. The pound sterling is now at 46 pence. My savings in my Barclays savings account from my days in the UK, have soared by over 20% this year in "dollar" terms. Assuming you want to take the "optimistic" view and ignore the dollar's collapse.
Cheers,
Brian
Philip Berg <philip@...> wrote:
The overnight action in Gold and the USD index not to mention yyesterday's action has me rivited. The dollar is melting,melting,melting. Can the Fed cut. and risk a total collapse of the dollar. Can they not cut and watch the financial system collapse. Not the cutting really matters. The presses are running red,hot or I say the electrons, buying worthless mortgage paper at face value, perhaps by the hundreds of billionns. The ultimate problem is that the derivitive market is over 400 trillion. dollars. If just 10 percent of that requires monetization, the world money supply will more than double overnight. Very scary.
Maybe the Wizard can save us. Or maybe we will just have to follow the Yellow Brick road.
