muses of the moment

July 25, 2009

The US Dollar-watch closely……

Uncle Harry was bearish on the dollar this week. Jim Sinclair said he was watching it closely.

Now here is Jim’s latest take on the situation, bolded type is mine:

Dear Friends,

I loathe to bring attention to this as we are read by the Fed and Treasury. That fact is a compliment, but the inadvertent contribution to MOPE cannot be denied.

I guess being a family member of “Our Crowd” has bought me some leeway as long as I remain economically focused and do not get personal with the real power. I will not in an attempt to look out for all our best interests.

Yesterday and today we have been playing with a key area in the US dollar at which intervention is reasonable to assume.

It is key for sure as .7200 and then into the high .6000 is what is lurking in this Battle Royal.

Strong dollar policy is intervention to modify the decline from the rout it has the power to be.

With the entire planet with the exception of GB loudly or quietly wanting dollar diversification, the high .6000s is a magnet of great substance pulling NOW strongly on the USDX.

The value of gold is all in the inverse of the value of the US dollar.

Respectfully yours,
Jim

In groovygirl’s opinion, the FED is manipulating the USDollar to stay as high as possible, in order to sell all those bonds to pay for bailouts. They are fighting harder right now, as NO ONE really wants the USDollar.

They will lose and will then try to hold at .72 and then try to hold at .60.

Get out of dollar denominated assets, buy precious metal assets.

Jim has alluded in other posts to a January 2010 date for the next leg down for the dollar.

You now have a time line, expected USDX prices, and advice for alternatives to the dollar. Protect your investments, protect your capital.

The dollar has been losing value since 2001, it will never gain it back. Sometime in the long term, it will be “revalued” when the FED can’t manipulate it anymore. The manipulation is a controlled lowering of the dollar, just like the FDIC is in the process of a controlled bank implosion. Ben is a student of the depression, one lesson he has learned, if you can’t fight the market cycle downward fall, control it, and get your friends out of harms way before you let it fall. BEWARE.

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