[quote=Arraya]They must be shitting their pants at this point. There won’t be any kicking the can down the road this time.[/quote]
Are you looking at the USD index? 75.55! There’s no real support below this thing now until we hit 73. And by that time gold will be well over $1100. It’s almost like they have completely given up trying to kick the can.
I do believe there is a large amount of excrement shooting from the bowels of our elected leaders now.
Jim Sinclair had an interesting comment on his site today:
“This evening in Asian trade, the Japanese Minister of Finance once again restated the new view out of Japan that the level of the Yen is no longer an obsession with the monetary authorities of that nation. His comments were interpreted by the Forex markets that intervention to stem the advance of the Yen is most unlikely. With that, market participants wasted little time bidding the Yen into a strong advance.
Those statements of his, combined with that of Federal Reserve Vice Chairman, Donald Kohn, that the US economy would not experience a quick or sharp recovery out of its recession, were both read by traders that US interest rates were not going anywhere anytime soon. Carry traders then beat the Dollar down below critical support near the 76 level on the USDX as they rushed into higher yielding currencies such as the Aussie and Loonie. The Euro also shot up to another new yearly high.”
If the Fed does not intend to raise interest rates – and let’s face it, they can’t – then we really are witnessing the end of the buck – first as a reserve currency (which has technically already happened over the last 2 months as banks have radically shifted their allocation of reserves), then as a currency, period. I suspect the first milestone will officially be crossed at the end of the month. By the end of next year, I think we will be hearing Congress and Obama bleat about developing a new currency/alternative to the dollar.
