Gold and Silver Sale - While Supplies Last

Bernanke Makes Bulls From Dollar Bears Seeing Growth
Feb. 4 (Bloomberg) -- Ben S. Bernanke's decision to lower interest rates 1.25 percentage points last month will end the dollar's two-year slide, according to the world's biggest currency traders.

``We're not chasing dollar weakness any lower,'' said Robert Robis, a fixed-income manager in New York at OppenheimerFunds Inc., which oversees $260 billion. ``The Fed's actions have avoided a long recession and we may start to see a recovery later this year.''

``If aggressive cuts by the Fed can stimulate the economy, then the U.S. will definitely lead the way in terms of economic recovery,'' Yu said. ``The ECB is behind the curve, so it's time to move back'' into the dollar, he said.

This is an example of why my father always told me, "don't believe everything you read". One of three things is going on here. It's 1984 and up is down, and down is up. Wishful thinking his replaced reality. They are smoking some serious wacky tabacy on Wall Street. "The Fed's actions have avoided a long recession..."? LOOOOOOOOOOOOOOOL! The Fed's actions haven't solved a damn thing. As a matter of fact, they will probably make things worse. Wall Street, and certainly not the US Government, haven't even acknowledged that the US is even in a recession YET. How could we have avoided one, at any length, if we haven't even acknowledged the existence of one. Of course, it doesn't take a genius to realize that not only has the US already entered a recession, it's going to be long AND ugly inspite of all the tricks the Fed tries to use to make it disappear.

The Dollar has caught a bid here, temporarily, on the "news" that growth may be slowing in the Eurozone. Folks, the ECB charter does not mandate shoring up growth as does the Fed's. The ECB's "focus" is on controlling inflation. That is job number one in the ECB. It is becoming increasing clear that the ECB is not going to be led around by the nose by the US Fed. This dollar bid today is all in anticipation of a rate cut by the ECB Thursday. The ECB will hold rates steady Thursday...and the Dollar will slump yet again. It would be very surprising were they to do otherwise.

Euro slides as PMI data ups ECB rate cut pressure
London, Feb 5 (Reuters) - The euro fell sharply on Tuesday as surprisingly weak euro zone service sector data increased pressure on the European Central Bank to cut interest rates to shore up growth.

The euro fell 1 percent on the day against the dollar after figures showed that the service sector growth across the 15-nation bloc slowed in January to its slowest rate in four and a half years.

The ECB meets to set interest rates on Thursday, and is widely expected to keep them on hold at 4 percent. But investors and analysts believe the services sector data can only force the bank to soften its tough stand on inflation, sharpen its focus on growth and bring forward the timing of its first rate cut.
http://www.reuters.com/article/usDollarRpt/idUSL0529643820080205

Yadda, yadda, yadda...pass the pipe. It's true that none of the World's central banks want to see the Dollar collapse. I believe it's also true that they are tired of Dollar hegemony as well. This interest rate issue with the ECB is merely a smoke screen to the REAL growing threat to the US Dollar. The OPEC nations are beginning to get very serious about cutting there local currency pegs to the Dollar. The Chinese have stated openly that if the Fed continues to lower interest rates, they will have to look elsewhere to invest their wealth. The diminishing demand for dollars is a serious problem.

Inflation is never pretty, and no matter what the ECB does with interest rates, or OPEC does with their Dollar Peg, or the Chinese do with their accumulated wealth...Inflation is on it's way in a GIGANTIC way, not only in the US, but around the globe...and it will be very bad for the US Dollar, the Euro, all the funny monies of the world...and very good for Gold.

Gold today has moved quite quickly into our first support zone of 880 to 890. Downside risk to the trendline at 870 grows. Silver has plumbed it's first line of defense at 16.48 and should Gold test it's trendline, Silver would quite likely visist congestion in the low 16s. Keep in mind the 50 day moving averages of both Gold and Silver. Gold: 849 Silver: 15.22 Both are rising steeply.

And what do we do when Gold and Silver are on sale? WE BUY MORE!