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So I have been watching kitco today an it seems like in addition to all metals take a serious dive, stocks are down, so is oil, and so is the dollar. Any enlightened folks, or crazy wingnuts have any ideas on what causes all these things to fall at the same time? I am more of a sociologist than an economist and am scratching my head.

Apmex had an update in facebook talking about china raising interest rates to combat inflation and industry there slowing.. That's not verbatim but what I took away from it.

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I say to Hell with China if we can`t make it we don`t need it.

Bring all our jobs back home, put people back to work.

I know about all the economics and I`am not worried about other countrys, so lets take care of our country and it`s people first.


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Beau wrote:.
I say to Hell with China if we can`t make it we don`t need it.

Bring all our jobs back home, put people back to work.

I know about all the economics and I`am not worried about other countrys, so lets take care of our country and it`s people first.


.

+1

It's a global world. Business must be provided serious incentives to create jobs in America, and serious dis-incentives to create jobs overseas. If nothing changes, business will seek out increasing cheaper job opportunties overseas.

Gold, Silver Drop as European Debt Concerns Mount, Driving Dollar Higher

By Sungwoo Park - Nov 12, 2010 3:22 AM ET Gold headed for the first weekly drop in three as concern that some European governments are struggling to finance themselves boosted the dollar. Speculation that China may tighten monetary policy triggered a broader commodity selloff that also hurt precious metals.

Immediate-delivery gold lost as much as 2.2 percent to $1,378.30 an ounce, and traded at $1,384.70 at 4:20 p.m. in Singapore. The metal touched an all-time high of $1,424.60 on Nov. 9. Cash silver slumped as much as 4.1 percent to $26.5800 an ounce, and spot platinum and palladium also dropped.

The ministers of Germany, France, Italy, Spain and the U.K. issued a statement in Seoul today during the Group of 20 summit that a new system to handle future debt crises in euro-region countries won’t apply to outstanding debt. The Dollar Index advanced for a sixth straight day.

“The dollar is really strong,” said Wallace Ng, executive director of commodities at ABN Amro Bank NV in Hong Kong. “That’s a good excuse for them to take profits.”

A majority of global investors predict that Ireland will default on its sovereign debt, according to a Bloomberg Global Poll. The ranks of those anticipating an Irish default have tripled since a survey in June.

The euro fell to a six-week low against the dollar amid concern that sovereign-debt issues will weigh on economic growth in Europe. Gross domestic product in the 16-nation euro area increased 0.5 percent in the third quarter, after expanding 1 percent in the previous period, according to a Bloomberg survey before a European Union report today.

‘Negative Factors’

“Market attention is switching back to negative factors for the euro,” said Naoto Minatogawa, a currency analyst at Himawari Securities Inc. in Tokyo. Gold usually moves counter to the U.S. currency.

Speculation that China may step up measures to curb inflation spurred “some selling” in commodities, said ABN Amro’s Ng. Consumer prices in China jumped 4.4 percent in October, the fastest pace in two years, the statistics bureau said yesterday. Copper, zinc, cotton and soybeans dropped.

“There’s talk of an interest-rate hike over the weekend,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million. “It’s quite possible given how inflation has accelerated.”

The People’s Bank of China boosted its benchmark one-year lending rate on Oct. 19 by a quarter of a percentage point to 5.56 percent, the first increase since 2007. The central bank may raise interest rates within weeks, according to a Bloomberg News survey of economists.

Bullion has gained 26 percent this year, set for a 10th annual gain, on bets the Federal Reserve’s plan to buy back more bonds will erode the value of the dollar. December-delivery futures fell as much as 1.9 percent to $1,377.30 an ounce.

Platinum for immediate delivery retreated as much as 3 percent to $1,703.50 an ounce, and traded at $1,708 an ounce. Spot palladium fell as much as 5 percent to $677 an ounce.

To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

blackrabbit wrote:So I have been watching kitco today an it seems like in addition to all metals take a serious dive, stocks are down, so is oil, and so is the dollar. Any enlightened folks, or crazy wingnuts have any ideas on what causes all these things to fall at the same time? I am more of a sociologist than an economist and am scratching my head.

I think there would be a whole lot of sociology in the study of why people drive the markets the way they do. Kinda like the old story of watching Lemmings follow each other as the first one races off a cliff. In the 70's they called it "Group-Think", didn't they?

Off topic I know, but FYI, the cliff thing with relation to Lemmings is actually a myth. The only documented footage of that happening was in, of all things, a Disney nature film where they actually deliberatly scared/drove the poor wee buggers off the cliff!

Devil Soundwave wrote:Off topic I know, but FYI, the cliff thing with relation to Lemmings is actually a myth. The only documented footage of that happening was in, of all things, a Disney nature film where they actually deliberatly scared/drove the poor wee buggers off the cliff!

Damn Disney fascists! I remember watching that film as a little kid!

lol - yeah, just double checked on wiki - White Wilderness, 1958. Apparently they used a turntable device to fling them off the cliff!

Devil Soundwave wrote:lol - yeah, just double checked on wiki - White Wilderness, 1958. Apparently they used a turntable device to fling them off the cliff!

LOL! Oh, Gawd! This just gets more funny as you go! The poor little Lemmings being flung off a turntable?! Where is PETA when you need them!

US manufacturing = lower taxes + fewer regulations. Need some regs but we have too many.

Lemmings falling like the price of metals today! Thanks for the info and humor. This realcent virtual/mail correspondence community is a is really cool. A lot of different views and an incredible amount of knowledge to access here here so hopefully we won't succumb to group-think or be hurled off cliffs in mass by fascists!

Its all Jim Cramer's fault! He jinxed us by recommended buying gold!