muses of the moment

April 29, 2011

Friday update on gold, silver, US Dollar, and US banks


Five banks down so far, as the controlled banking collapse continues. Keep in mind that the bank “stress tests” show that US economy must grow more than 2% per year for US Banking system to be stable. US has not grown 2%. Prior growth stats continue to be revised downward and future predictions continue to be downgraded.

Gold closes at $1563, today, with an intra-day high of $1570. Gold going strong in the mist of options expiration and Bernanke’s speeches/meetings this week. Gold didn’t seem to hesitate at $1550 at all.

Silver closed at $47.94, today, with intra-day high of $49.24. Can’t seem to make it past $50, so close to the all time high. Remember the battle of gold at its all time high, $850. Higher silver: just a matter of time. The correction that gg expected this week was only a few dollars in intra-day trading. Had to buy quick. It is clear that demand for gold and silver is very strong.

And then there was the dollar, barely closing above $73, at $73.03. Holding support at $72.80, but seems weak. Breaking below $72 will have major impact. Rumors are that Greek debt will need to be “restructured” (they’re bankrupt) in less than 2 weeks. This could put downward pressure on the Euro, causing the dollar to rise or hold steady. It will be interesting to see how precious metals react to this next European debt crisis. Press releases after close in European trading focuses on their failing banking system, click here. It is a global bank default, no one will be left behind.

The numbers say it all. Dollar is toast, gold and silver trading as alternative currencies and store of value, and US banks still failing although in an orderly fashion.

Hope you have protected yourself.

Latest Letter from Martin Armstrong dated April 28, 2011

Filed under: Economic Confidence Model Cycle, Martin Armstrong — Tags: — totallygroovygirlfriday @ 11:37 am

Click here for Martin Armstrong’s latest letter entitled Passing the Torch to Asia dated April 28, 2011 (8 pages).

Mr. Armstrong is cranking them out this week. It is great! The letter is obviously about the decline of America and the rise of Asia. If you are a reader of Martin, you already are aware of this transition in process right now.

Mr. Armstrong explains how low-interest rates cause capital to move to better environments. Ever since 2000, global money (not just jobs) has been slowing moving to Asia (China and India). With the global economic crisis, that process is just accelerating. With the global banking system on the internet, it takes about less than a second to move money to better returns.

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