[J. Abizeid]

Originally Posted by J. Abizeid

The amazing thing this is that gold is going down while the US stock is going down and the dollar is up. It suggests a demand on the dollar not only from the fed reserve borrowing it but, from someone selling lots of gold. It happened before in the seventies when oil was brought down to $12 the barrel. The Saudis had to subsidize their lost revenue by selling their gold. As soon as they ran out of gold, oil was allowed to go up again, and gold started doubling in prices while the dollar tumbled.
History is repeating itself.

How can we accept the fact that the US economy is bankrupt with its banks and markets collapsing and its debt increasing at a rate of $2 billion dollars a day, while the dollar is skyrocketing not only against the euro but the Canadian and Singapore dollar, the Suisse franc, the British pound and most importantly GOLD.
How can we trust a paper money from a bankrupt treasury department begging to borrow its own money, more than solid GOLD?
If it’s too good to be true, it is not.
It’s the illusion that the jungle is running out of monkeys until they release those monkeys out of the cage.
If we look at Enron stock chart before it collapsed, we can anticipate what will happen to the dollar. I remember how Enron was cutting power in California to make belief there is a shortage of energy. It’s an old corporate/republican trick that still fools people with short memory.
The skyrocketing charts for the dollar resemble the first part trajectory of a bullet going up. Once it reaches its peak it cannot stay there for one second. It must come down in a hurry.