Early this morning, you saw a strong sell off of the equity market and a rebound to the dollar. This however did not last; the market went up the rest of the day while the dollar fell. Looking at the chart, the trend has continued by calling Bernanke’s bluff of a strong dollar policy. If the Fed takes no action to strengthen the dollar, we will continue to see it fall. Naturally, this is exactly what the Fed wants because it will cause the inflation it needs that will give the impression of a growing economy. Evidence of this is the fact that gold barely sold off and is still way over 1100 an ounce. […]

I have much criticized many of the players who are intimately involved with this financial collapse. Man like Angilo Mozillo, Hank Paulson and Turbo Tax Timmy disserve to be called villains. Two of those 3 men made billions as the economy collapsed cashing in stocks worth billions of dollars. But among all the greedy evil little man in power, a hero has emerged. Bernanke has orchestrated an economic recovery to the t. He first stopped the hemorrhaging of credit by supplying infinite blood to the system at no cost. He then kept inflation in check by providing debt to the market. But before he even attempted it all, he had to convince world leaders that this was the only way. […]

Many leaders around the world have ensured that they will remain easy money policies until the global economy is stable. At the same time, they all had concerns over the volatility of the forex currency exchange markets. In many countries, the collapsing dollar is casing havoc. Countries with economies that are highly dependable on exports are starting to be affected by the falling dollar. […]

Looks like it doesn’t matter what way the dollar goes, gold is pushing higher every day. For the first time there is actual fear of a gold short squeeze for those that will stand in the way. Governments around the world are wondering if the easy unlimited printing money policies are about to back fire. Well it, who knows, but I’m buying as much gold as I can! […]

Gold hit 1120 an ounce today while the S&P staggered at 1097. It looks like for the market to head higher, the dollar has to continue to fall. The issue now is that the affect of a falling dollar on the equity market is less than the affect of the falling dollar on the commodity market. This is a clear sign of inflation and the necessity of rate increases in the future. However, issues with other foreign currencies, AKA the YEN, might actually support the dollar rapid decline. Apparently, Japan is having troubles paying back the interest in their debts and is close to defaulting. […]