The fed continues to print massive amounts of dollars out of thin air. The US dollar is fundamentally and technically very weak and headed for even lower levels. Once the psychologically important support at 80 is broken, we expect a dramatic sell-off of dollars around the globe. We are in the early stages of a massive global currency debasement which will see tangibles, and most particularly gold, rise significantly in price.

Gold is bought and sold in U.S. dollars, so any decline in the value of the dollar causes the price of gold to rise. The U.S. dollar is the world’s reserve currency – the primary medium for international transactions, the principal store of value for savings, the currency in which the worth of commodities and equities are calculated, and the currency primarily held as reserves by the world’s central banks. However, since it has been stripped of its gold backing, the dollar is nothing more than a fancy piece of paper.

Money supplies all over the world are increasing – 10% per annum in the United States, 10% in Europe, 14% in Asia. The printing presses are working over time and eventually the chicken must come home to roost…

Continue reading The Fed, Funny Money, Fascism and Gold Investing