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US Dollar Collapse Imminent while Precious Metals Surge

http://www.kitco.com/market/

The dollar has broken through it's 2009 lows to 79.43 for the first time in a while and metals have been surging up back to the 1,000 level with silver gaining much ground recently back up to 15.50

What are your thoughts?

I think we are going to begin to see large amounts of inflation, unemployment and a dollar weaker than 70 real soon. If the dollar goes sub 70 in my opinion ... there will be a massive selloff.

The government will rapidly increase quantitative easing but this will compound the problem. Some are even talking about inflation much worse than the 1970s.

What are your thoughts?




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Are you aware of Timmy

Are you aware of Timmy Geithner's education?

"Geithner was born in Brooklyn, New York. He spent most of his childhood living outside the United States, including present-day Zimbabwe, Zambia, India and Thailand where he completed high school at International School Bangkok. He attended Camp Becket-in-the-Berkshires-for-boys, a summer camp located in western Massachusetts. He then attended Dartmouth College, graduating with a B.A. in government and Asian studies in 1983. He earned an M.A. in international economics and East Asian studies from Johns Hopkins University's School of Advanced International Studies in 1985. He has studied Chinese and Japanese."

It'll be interesting to see if he speaks to the Chinese IN Chinese. Let's put a mic on him.
..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

The central bank is on pins and needles right now ....

Right now, while M1 is enormous relatively speaking, M3 has yet to see the effects of the massive infusion by the FED. They are sitting there waiting, with their finger on the button. As soon as the velocity starts to pick up again they will have to pull that infusion from the market or raise interest rates to slow the velocity. Since they have been buying treasuries as of late, they will be limited as to how much they will be able to pull out of the market. They can't redeem the treasuries, the govt. doesn't have any money to give back to the FED. Really, the only way they have of reducing M1 is to let the banks pay back the Tarp money, that is why they are not letting them do it. If they let them do it now, it reduces their options in the future. They will have to raise interest rates, which creates all types of problems for the FED, the treasury, and we the people.

You watch ...

as soon as inflation rears its head, they will slowly allow the financials to pay back the tarp money.

WAHOR!!
http://www.dailypaul.com/node/48994

the central bank is on pins and needles?

huh?

Uh... Geitner is at the reigns here.... remember? This entire collapse has been scripted from the start... the CENTRAL BANKS are nothing but a step to becoming the CENTRAL BANK! of the WORLD! The FEDREZ WANTS to collapse.... END THE FED is THEIR MOTTO now...

Does my burka make my butt look fatwa?

Does my burka make my butt look fatwa?

With all due respect ... I strongly disagree.

The FED is scrambling along with the rest of the western central banks. This has not been planned. If you truly believe that, then you have to believe that centralized planning works, which means you can not believe in Austrian economics.

WAHOR!!
http://www.dailypaul.com/node/48994

If I beleive this was scripted

than i believe CENTRAL BANKING works?

What kind of logic is that?

Does my burka make my butt look fatwa?

Does my burka make my butt look fatwa?

Central bank holds nothing what's the problem

IF loans are backed by nothing, why is there a crisis on credit...China must only be worth 10 % of the loan value as the banking system works...Why are we paying them interest on nothing...China gets it's credit which is nothing, so who is scaming who....Sounds like a laundramat...
you-no

Maintaining an illusion of

Maintaining an illusion of reality keeps the rats running... myself included.

Gold is up $21 Silver is up

Gold is up $21
Silver is up $0.62

All paper money eventually returns to its real intrinsic value, zero. - Voltaire

Getting very interesting.

And most people think the economy is all rosy from here...

ecorob's picture

consumer confidence is high...

stock market is surging...nothing to see here, move along...

O Captain, My Captain, rise up and hear the bells!

its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!
9/11 Truth.

SDRs have the ISO 4217 currency code XDR.

There is one thing to watch as dollars are being removed from the market before allowed to collapse. This is via the IMF and exchange of dollars for SDRs. Where it has been suggested that having holders of US dollars convert those dollars into SDRs would allow diversification away from the dollar without accelerating the decline of the value of the dollar.
The value of one SDR in terms of United States dollars is determined daily by the IMF, based on the exchange rates of the currencies making up the basket, as quoted at noon at the London market.
No new SDRs had been created between 1981 and the 2008 banking crisis: Only 21.4 billion of them currently exist (equal in value to $31.9 billion).[citation needed] On 2 April 2009, the G-20 authorized the IMF to issue $250 billion in new SDRs to augment the foreign reserves of IMF members and quickly channel resources into emerging economies.[11] Increases in the reserves of some emerging economies will be substantial i.e. South Korea’s will grow by $3.4 billion, India’s by $4.8 billion, Brazil’s by $3.5 billion, Russia’s by $6.9 billion and China's by $7.3 billion.
http://en.wikipedia.org/wiki/Special_Drawing_Rights
So in other words, dollars probably won't be sold off or spent in the market to purchase American goods, but instead will be traded for SDRs. otherwise known as XDRs where they will be held and the ultimate International Central bank will have control.
grant

If I'm understanding SDRs

If I'm understanding SDRs correctly, they are simply a currency, the XDR, which is pegged to the value of 4 different currencies: the USD, EUR, JPY & GBP.

If the USD goes down in a big way, wouldn't at least the EUR & GBP likely go down with it? I leave the JPY out of that equation simply because of the mess Japan has been in since their crash back in 1989. The JPY has already been dished out their fair amount of pain for two decades. Who knows, maybe the JPY sinks even more as well.

I'm not convinced that exchanging dollars for another currency which is valued at 44% of a dollar, 34% Euro, 18.4% JPY and 11% GBP is any better.

...

The plan is for Central

The plan is for Central banks around the world to turn in their dollar reserves including treasury notes to the IMF and recieving XDRs. This is being done slowly as not to cause a panic. According to the agreement the country who has the greatest share of SDRs at the IMF has more decision making authority. Currently the United States has the most authority, but this is soon to change. For this reason Obama wants Congress to approve spending to purchase more XDRs and maintain it's control.
grant

i've also heard ron paul

i've also heard ron paul talking against SDR's .. don't know much about them though .. i'm still guessing its a different type of fiat currency

All paper money eventually returns to its real intrinsic value, zero. - Voltaire

True it is fiat, since it is

True it is fiat, since it is mostly backed by fiat currencies, the problem is that as such they are also backed by most all governments and their armies which can and have outlawed precious metals as money, including China at one time. China is slowly transfering their U.S. dollars into SDRs, this guarentees them more security and control over the IMF. It isn't going to be an easy battle, that is all I am pointing out. Don't count on overnight increases in PMs, especially when it is the IMF that sets the rates of exchange.
grant

Ron Paul called it...

Ron Paul called it... Inflationary Depression... that is what we will have.

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

will have????

My local housing market is down less that 1/4 of the peak price of 3 years ago. Groceries are going up weekly. NOBODY has any money here but prices are increasing. Two dollar bills and pre-1964 silver coins are popping up here because everyone is digging to the bottom of the barrell.

Peeps!...This is not a prediction anymore. It is reailty! I do live at ground zero but this is not isolated.

Inflation as well as deflation!!!!!!

I used to argue against this, but it is reality

interesting about pre 64 coins

I'm in the Phoenix area and I've received three wheat pennies in the last two weeks after seeing maybe one in the last year. I told my wife the same thing, people are digging deep.

I agree.. it is here and

I agree.. it is here and now

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

SteveMT's picture

Dollar at 5-month lows as safe-haven luster fades

Friday May 29, 2009, 2:09 pm EDT
By Vivianne Rodrigues

NEW YORK (Reuters) - The U.S. dollar fell to five-month lows against a basket of currencies on Friday as an advance in global equities and signs of an easing global recession drove investors to snap up higher-yielding currencies and riskier assets.

Global stocks rose and some equities markets posted 2009 highs, diminishing the safe-haven allure of dollar assets and sending the euro to a 2009 high against the dollar.

A government report showed the U.S. economy contracted in the first quarter slightly less than initially estimated, but the market had expected evidence of a shallower recession.

"The dollar is being slapped around," said Boris Schlossberg, director of foreign exchange research at GFT in New York.

More:

http://finance.yahoo.com/news/Dollar-at-5month-lows-as-rb-15...

SteveMT's picture

And How!

Metal Bid Ask
Gold $977.90 $978.90 up 14.70

Silver $15.65 $15.70 up 0.50

Platinum $1,189.50 $1,199.50up 46.70

Palladium $234.50 $239.50 up 3.00

Updated:5/29/2009 1:25:39 PM CST

http://www.apmex.com/

Dollar rally imminent?

It probably is according to our friends at Elliottwave.com, taking prices back into the 90s or even 100s before another major correction comes along.

since the government is

since the government is spending and printing money like mad I do not see how the dollar will rally, unless other currencies outprint ours. I agree with everything Elliot wave says.. they have the precious metals part wrong.. Prechter seems to think the sun rises and sets in the US.. the problem is the Indians, Chinese, Russians and arabs are buying silver and gold.. what we do not buy they are more then happy to buy with US dollars.. unforunetly.. mish, nadler, prechter and some of these other so called deflationists only look at one side of the coin..
http://www.kitco.com/ind/willie/may292009.html

this article points that out

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

Maybe,

but since it has fallen through its 200 day MA; longterm, the dollar is toast.

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"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
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lol..... "When governments

lol.....

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

dollar rally? i don't know

dollar rally? i don't know about that ...

All paper money eventually returns to its real intrinsic value, zero. - Voltaire

who knows

Welp, there are still lots of losses in the Alt-A and Option ARM realm/Commercial real estate so all this credit creation will possibly just be filling up the gaping hole those leave when they collapse. Stagflation might be the name of the game.

looks like that IMF sale

looks like that IMF sale didn't do squat so you could buy gold at a much lower price did it? Neo they are goin to vote on that IMF sale next week.. it will do nothing to drop the price of gold.. that gold is already spoken for.
try to get what you can now, I think the train is leaving the station.

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

Buyers market if you have money.

I'm sure they don't want it so cheap that everyone could afford an ounce and they don't want it too expensive, since they want to be able to trade their FRNs for some to put in their safes at home.
grant

it is already in their safes

it is already in their safes at home.. why do you think they want the imf to sell?? raid the imf just like they raided the US treasury.

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain