89 days to go.

We live in a world of skewed economic figures and algorithms.

All you need to do is tickle the public with figures, tip a technical point, and the algorithms fire off from the fastest first to the next fastest down to the slowest. They are all thoughtless machines at work.

The primary facts to keep in mind is there is a near planetary desire for the initiation of the SDR type Super Sovereign Currency, which means dollar diversification.

The recent China/US financial summit was not scheduled, but rather requested. I believe that China has expressed its interest for the SDR type Super Sovereign Currency before the end of 2009. It is one of the factors in the countdown of days remaining for the dollar.

When the dollar implodes it will be an event to behold. The crack will likely only last a few days but will penetrate many significant price figures.

Recall when I told you Fannie, Freddie, GM and GE were the slowest train wrecks in history and how hard it was to hold a short position? That is the US dollar. However when Fannie, Freddie, GM and GE all busted after enormous resistance, it was like a firestorm with no real recovery. That is also the dollar.

Since markets are momentum driven, the continuing decline in dollar demand is sufficient and does not require dollar instrument selling in order to significantly impair price for the long term. That is what is now behind the long dollar decline. That is what will take the dollar to USDX .7200. The SSCI will break the support levels of .6200.

Gold will trade at $1224 and $1650 on the way to Alf's targets.

Respectfully yours,
Jim