....is The Final Chapter (courtesy Jim Willies Hat Trick Letter)

◄$$$ THE GOLD BREAKOUT IN US$ TERMS IS THE FINAL CHAPTER AND THE MOST POWERFUL REVERBERATION. IT REQUIRES TIME TO BUILD TOWARD CLIMAX. THE LACK OF GOLD METAL INVENTORY IS THE ACHILLES HEEL OF WALL STREET AND LONDON FINANCIAL CONTROL FOCUSED ON GOLD PRICE SUPPRESSION. NOTICE THE DOLLAR DEATH DANCE, PART II. WE ARE AT THE BEGINNING OF A GOLD RALLY IN ALL MAJOR CURRENCIES, THUS A LOUD GONG OF GOLD SUPREMACY AS A CURRENCY. $$$

The Gold price in US$ terms, despite the hue & cry, is hanging on well. It maintains support above the $1050 price, the level forecasted as worst case by James Turk of GoldMoney. The 2Q2010 should mark the start of a strong recovery phase. It has succumbed to two powerful downdrafts, aided to be sure by selling golden paper. Its long-term 50-week moving average remains in uptrend. In the last week, gold investors have sighted a bullish stochastix crossover in the making. Never have the COMEX and LBMA metals exchanges been in possession of less gold & silver metal inventory in their history. In fact, the suppression of the paper gold price has resulted in production ironically of physical metal placed by honest brokers as margin collateral. Margin calls result in forfeited metal posted as collateral. The metals exchanges are attempting to institutionalize the validity of derivatives in lieu of gold bullion. Remember the summer 2009 when the major houses openly advertised that gold bullion could be used to post margin on a wide variety of futures contracts. The criminal machinations are in a conclusion phase on gold price suppression. The US leaders of all stripes fail to comprehend the depth of the fiat currency problem, reflected in banking system insolvency and federal debt explosion. Gold has been and will continue to be the refuge, not the USTreasurys, which are locked in the final bubble. In fact, USTBonds constitute a Black Hole. Defense of the USTBond leaves the USDollar more exposed to a global selloff. Its defense also destroys the USEconomy.

When the makeup of the New Core Euro is clear, watch the US$ DX long-term decline resume, and do so powerfully. The trimmed version of the Euro will coincide with expulsion of PIGS nations and consolidation to a German core joined by its strongest neighbor partners. The globe will face the worst monetary crisis in history, with epicenter the USDollar. The sovereign debt defaults will come full circle, the start being September 2008, the conclusion an attack on the USTreasury Bond. The USGovt debt is unsustainable, growing worse, and will eventually break. Pure financial physics. Gravity will sink the US Ship of State and its tethered banker flotilla, even its imprisoned economic ramparts. The global reserve currency in the USDollar stands as the biggest travesty in the history of global finance.

The Dollar Death Dance part I occurred in autumn 2008. It was sustained by incredibly massive credit derivative redemptions and payouts, almost all in US$-based transactions. Thus the USDollar demand was extraordinarily high. The US$ DX index rose in paradoxical fashion, due to the ruin of the US financial foundation. The Dollar Death Dance part II began in December 2009. It has been sustained by a perception of the Euro currency being fatally broken. The USDollar has been beneficiary in the Competing Currency War, perceived as a safer acid pit of debt than other regional currencies. The Euro currency is undergoing transformation, not destruction. The European Union is fractured, but the integrity of core nations is assured. Furthermore, the Euro currency will fall back on its strongest core element, the German financial power. It will eventually resemble the Deutsche Mark, which Germany will permit usage by only its viable neighbor partners. Little do US banking and political leaders realize that the United States suffers from a macrocosm of forces that strike Greece and the other PIGS nations.

For an excellent brief analysis of the competition among Stocks, Gold, and USTreasurys, see the Kitco article by Graham Summers entitled "Which is the Real Safe Haven: Treasuries or Gold?" (CLICK HERE). He makes several great points, like whenever the USTreasurys look like they are on the brink of a meaningful breakdown, a Stock decline occurs, and funds flow heavily into USTreasurys. He believes we at the beginning of a rally in Gold in all currencies, a movement kicked off by the European debt problems. The Gold breakout in Euro terms is possibly soon to be joined by breakouts of Gold in British Pounds, Gold in Japanese Yen, and Gold in Swiss Francs, with the Gold breakout in USDollars last. When the surge is universal, Gold will be perceived as a stand-alone currency!