UPDATE On Gold And The USD
May 14th 2009 17:54
Let's review where we are. The USD has broken through it's last major low, Silver has broken out as has Gold and now we are getting all sorts of experts warning of inflation.
China was the first to worry about its U.S. Dollar holdings. Afraid that their holdings will decline further in value, it has stopped buying Treasurys and has added over 450 tons of Gold to reserves, at the same time indicating it wants to increase that amount to 5,000 tons of Gold, a five fold increase.
Japan today said it would not be a buyer of Treasurys unless they are denominated in Yen, something the U.S. would be crazy to do.
The FED has introduced trillions of dollars into the system to move us away from deflation. Now with the USD slipping against the Euro, there's talk that "economic union of nations will be forced to print fresh euros..." once the Euro hits 150 to the USD. That's inflationary.
Investor Jimmy Rogers said
Commodities will be the place to be for protection.
This country is being run like a Banana Republic and we are near a major breakdown of our currency like Argentina and Mexico.
China was the first to worry about its U.S. Dollar holdings. Afraid that their holdings will decline further in value, it has stopped buying Treasurys and has added over 450 tons of Gold to reserves, at the same time indicating it wants to increase that amount to 5,000 tons of Gold, a five fold increase.
Japan today said it would not be a buyer of Treasurys unless they are denominated in Yen, something the U.S. would be crazy to do.
The FED has introduced trillions of dollars into the system to move us away from deflation. Now with the USD slipping against the Euro, there's talk that "economic union of nations will be forced to print fresh euros..." once the Euro hits 150 to the USD. That's inflationary.
Investor Jimmy Rogers said
As for the dollar, “we’re going to have a currency crisis probably this fall or the fall of 2010,” Rogers says.
Commodities will be the place to be for protection.
This country is being run like a Banana Republic and we are near a major breakdown of our currency like Argentina and Mexico.
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