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.

3 comments:

  1. Good points made. The only thing I can't figure out is if this were to happen because of the pride of a few, won't they be susceptible to the same condition as us? Help me understand this one. Back in 1992 the dollar was at the low of 79. The next time we visited that low was in 2007. And the conditions of the economy where already turning. Why is it that in 1992 we didn't go through the same situation when the dollar was at 79 as it was in 2007? I just finished reading M. Armstrong's book "The Greatest Bull Market in History" from reading this book he brings to limelight how you must watch Capital flow. Any opinions after viewing the Capital Out/Inflows from the St. Louis Fed website?

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  2. I don't understand what you mean by pride of a few. What can happen is that confidence is lost in the US dollar and bond markets, investors will lose confidence that the government will be able to keep making interest payments on the bonds so then people will dump the bonds and dollars. I am not sure about the capital flows. You should write to Martin about this, I do remember that watching the dollar levels shows where capital flows are going, lately they have been leaving the dollar. I am more of a technician, fundamental analysis can get your head spinning.

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