Do you believe the Dollar?

[Engineer]

If the FED follows through, we could be in store for a DEFLATIONARY takedown, not unlike 2008-2009. Not just PMs, but everything will be sold for CASH. Perhaps the current takedown in PMs was the precursor of a DEFLATIONARY wave that was only held back by the FED's QEs. Bunker Time!

I worry about that too, Country. But will they really pull QE3? I can't envision the Bernake ever hitting the brakes too hard.

I'm betting they'll time it around the 2014 elections. A crash going in late summer or fall would give the PTB a chance to get some hopey-changey people elected, or it could be timed at year's end to keep the current buffoons in place. Either way, it would probably be a good idea to be in cash the second half of next year.

[InfleXion]

If the FED follows through, we could be in store for a DEFLATIONARY takedown, not unlike 2008-2009. Not just PMs, but everything will be sold for CASH. Perhaps the current takedown in PMs was the precursor of a DEFLATIONARY wave that was only held back by the FED's QEs. Bunker Time!

This is in part why I think we may be repeating 2008, besides the pattern repetition in silver. In 2008 metals were the first canary in the coalmine tanking. Silver was already dead cat bouncing to 20 in July 08 after peaking a couple months prior, but the DOW was still hovering around 12000 for at least another month after that before it tanked.

The blow off top from 2011 has been coming down for 2 years where as in 2008 it only took a few months so we are on an elongated timeline if the correlation is to hold true, which seems like it it could very well match up with QE being cut off by the end of the year. I would like to think that metals have far less downside than anything else having already taken the hit if that ends up being the case.

I'm not so sure it will be bunker time, at least I hope not. The Fed knows how to handle this ship and my gut is telling me that the only reason they are doing this is to garner support for QE when people get a taste of what life would be like without it.

[68Camaro]

yeah - as I posted in country's thread, it makes no real sense, so it has to be posturing for a purpose. It will indirectly stimulate a crisis, so I suppose that is what they are striving for. For what pupose that? That's the next question.

[Engineer]

yeah - as I posted in country's thread, it makes no real sense, so it has to be posturing for a purpose. It will indirectly stimulate a crisis, so I suppose that is what they are striving for. For what pupose that? That's the next question.

To cool off the housing market, perhaps?

[Jonflyfish]

I believe in the dollar. I believe that it is legal tender because I use it for all commerce transactions. I believe that it is increasing in value vs the JPY, EUR, AUD because my trading account shows it.

Cheers!

[neilgin1]

I believe in the dollar. I believe that it is legal tender because I use it for all commerce transactions. I believe that it is increasing in value vs the JPY, EUR, AUD because my trading account shows it.

Cheers!

"Chairs!"....I heard if you take enough time, and dig deep, you can find a LOT of loose change in your couch cushions....oh wait, "your trading account shows it"

I don't believe ONE WORD YOU SAY!!!...scan it and upload it, lets see this "trading account"!...I think your an Obama-ite...nothing but LIES!!!

[InfleXion]

yeah - as I posted in country's thread, it makes no real sense, so it has to be posturing for a purpose. It will indirectly stimulate a crisis, so I suppose that is what they are striving for. For what pupose that? That's the next question.

The ultimate purpose as I see it is class warfare against the middle class to usher in a neofeudalistic society. Working backwards, to achieve that end they apply pressure from above and below. Inflate the things we have to buy while deflating the things we hold as assets. Cutting off QE may or may not directly hurt the financial system, because after all they can just rig markets all day long to make their profits in the absence of law enforcement, and they already have all the money that's been printed so far. It's time to fleece again IMO. Metals have been monkey hammered and people probably feel pretty safe in stocks and bonds being at either all time highs (stocks) or multi-century highs (bonds) and I just don't see how that isn't a set up.

[68Camaro]

Hmmm. I'm have those same concerns, though I'm not sure that the bulk of TPTB are smart enough or have enough of the big picture to know exactly what or why they are doing that which they do.

As noted in the latest silver thread, gold below $1300 this morning and silver below $20. Kudos to Doc for that call - will it go to $17? - at this point I would say anything is possible with paper. If the markets are on the verge of a meltdown people will be exiting positions to things they trust emotionally, so we will see a flight to the USD (as ironic as that might be) and paper positions - even paper silver and gold, will get sold off. Again, I doubt physical will immediately see the same level of drop - though there may come a moment of panic for some that cause some spotty sell off of physical at low prices - and therefore some opportunities for those with cash.

If low paper prices last any length of time it will have a devastating effect on the miners, whose cost is arguably above the current spot prices - so a chunk of production will slow and/or cease.

Could be some historic opportunities! I could wish that I had held back more powder to now, but there is no life in the past, nor certainty in paper. Only physical and the future are certain.

[neilgin1]

Doc Rodee is the man.

[Jonflyfish]

USD is STILL the safe haven. USD is STILL the reserve currency of choice, by an overwhelming margin. USD is STILL the petro currency of choice. Many have spoken against the USD but it STILL provides the greatest level of confidence in global trade and commerce.

Cheers!