US Dollar Continues to be in Trouble

An interesting look into the US Dollar and how it works. There are some interesting things going on and it explains the actions of the Chinese and Russians.

Gold on a Run

The rampant reports of the dollar being phased out as the oil currency sent gold on an expected run today. The precious metal finished the day at $1042 per ounce. It's partner silver was right behind, going over $17 per ounce. The run came after a report that the Chinese along with other nations are working a deal that will phase the dollar out as the currency of choice for oil trade. Making things even more interesting was the fact gold was added to rumored equation.

This would of course explain the Chinese move to buy up gold and prompt their citizens to do the same. China is making a major push to become the world's number one economic power and they are succeeding. It is time for the United States to work closely with the Chinese as the two become more reliant on each others' economic stability. Interestingly enough, as these powers race in the economic world and create economic allies, the ideal of a more stable, peaceful world draws a bit closer. Nothing promotes peace more than economies which are reliant on each other.

Arabs Looking to Dump Dollar

Folks this is a stunning turn of events. According to this report the American Dollar will no longer be used to purchase oil. This is perhaps the biggest blow to the Dollar in generations. It is clear signal we have or are losing our stance as the world economic power. On the flip side, gold is going to run for the roof my friends, IMO.

Gold and Silver: Bear v. Bull

There still seems to be some mixed feelings as to if the gold/silver market is bullish or bearish. Indicators are mixed, leaving many scratching their heads. Here's what we do know. Gold has stayed at are near $1,000 this entire month, silver continues in the $16-17. The dollar shows little signs of life and is taking another beating against the Euro and other foreign currencies. However, on the flip side, how long before investors decide it is time to sell and take profits. This could create a self induced correction that history shows, can be sharp.

From reading and listening most believe if gold and silver continues to hold steady, then it is time to jump in and buy as that signals a sign the prices are going to remain. This really seems to the direction as so many signals (including the demands in India and China) indicate a bull market with an extended life. The best move right now might be sell, take some profits and wait. If the correction comes jump back in hard, if it does not slowly re-invest a little at a time. Remember hogs get slaughtered.

Gold and Silver Prices

Prices for both gold and silver seem to going a bit sideways today. Gold is up $2, while silver is up .09. Not much movement for either at this point in time. There is indications that the world's largest gold market India, is seeing an increase in demand. This is good news for gold investors, but could only be a temporary spike.

The dollar continues to struggle and former Fed Chair Alan Greenspan noted he believes unemployment could be going to 10%. Not a bold prediction considering it is currently over 10%. However, both could have long term meaning for the price of the gold and silver.

Have a good morning and I will be back later today.

Somoan Tsunami

Somoan Tsunami footage. If you are a praying person say a couple, if not wish for the best. The Somoan people are a hardy, self reliant group, they will recover.

Is There an Economic Recovery?

The question continues to be debated; Is there an economic recovery underway? The answer has two prevailing views. The first is no, there are little to no signs of a recovery, the national debt continues to rise, the dollar continues to plummet and there appears to be little growth in any economic segment. The opposing view is yes, there is a recovery. Job losses have stalled out, the real estate market is recovering and DOW Jones is hovering around the 10,000 mark. However, even this group of individuals agree that the recovery may be a jobless one. The unemployment reportis gloomy as once again first time claims have gone up.

So what is a jobless recovery? Basically for those that held onto their jobs, they look safe. Those that were cut, well good luck finding work that doesn't include the words welcome or do you want fries. For the latter group it will be very difficult to convince them a recovery is happening, for the former, forgive them if they hold onto a negative outlook. After all many of them are still facing wage freezes, unpaid leave and a stagnant future.

Honestly, for this individual it seems ridiculous for anyone to proclaim an economic recovery without job growth. If a large portion of society is unproductive the economy will remain at best in neutral, which is not a recovery.