Thursday, September 23, 2010

Caveat: It has been observed by others that Gold reaching new highs while the US dollar has not reached new lows is a warning that dollar bears may have to scramble as the dollar puts in a rally for a few months, this would tie in with Martin Armstrong's warning that gold may go down into hi Pi Cycle next June with markets once again seeking shelter in the US dollar as stock markets go down again. Also in agreement with my latest Silver chart above predicting a top for silver now which should also mean a top for Gold.

As previously forecast in March 2010, the US dollar was trending for a late May to Early June high, it peaked on June 7th, it now looks like it has put in the classic M top and is headed to hell in a hand-basket into late 2014 or 2015. This will likely be the unfolding of Martin Armstrong's long standing prediction of a major debt crisis with the trashing of the US dollar and Gold exceeding $5000.

Futurist Gerald Celente is predicting hyper-inflation, price controls on food and then food shortages as farmers stop growing food since they will be losing money doing it, then food riots will break out in US cities. I pray this will not happen, I don't know, all I can see is the US dollar is in trouble technically. As Mr. Armstrong has predicted what is coming is the death of Socialism, where politicians use other people's money and make promises that cannot be kept, as former British Prime-Minister Margaret Thatcher said... "Socialism works until you run out of other people's money". Mr. Armstrong has suggested that Karl Marx is the most influential economist in our modern era and that his picture should be on the US dollar not the founding fathers if politicians were honest about it.