Wednesday, November 23, 2011

Anti Dollar Propogandists scream loudly and Dollar reacts accordingly...

The dollar is making new swing highs on this move up and will count as "broken out" if it can close at or above current prices as I expect it will. The rhetoric and the ridiculous amount of misunderstanding about how the financial system works continues, with the blatant and simplistic view that "precious metals are the only real money” rationalizations for Gold @ $10,000. Accordingly, you can imagine how the dollar market feels about the loudly voiced commentary talking its badly positioned book. The dollar, of course, reacts by going up and it is going to continue to do so - destroying populists, simpletons and fools who practice the art of trading based on misinterpretation and fundamentals. The reality is also that if one were to get this absolutely essential part of the equation wrong there will likely not be enough compensation for that complacent error in other positions to make up for the oversight. Sure, French bonds yields may go through the roof and that is good if you are short the bonds - but if you get the dollar wrong you most likely have a lot of other stuff wrong and the results will show it. Rarely if ever will the simplistic dollar/gold/silver propaganda touted by so many from the Basses to the Paulsons to the Ice Crap Asset Management and the Durden result in the trades they are looking for…many of whom are beginning to remind me of the Whitney Tilson that Zerohedge so publicly disparaging.

I suggest a look at the ZeroHedge Gold propaganda and the Gold and Silver Bears (as invented by Turd Ferguson) poppycock that is being bantered about over there. Hey when your name is Turd Furgeson - should it be surprising if you promote ideas of similar nature?

Consider the following articles:

Then consider the following chart:

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