Thoughts For The Day

Gold traders today asked if the price should follow the general commodities lower or perform as the only vehicle in a major currency crisis that offers true safety moving higher. Gold will opt on this question to perform as a currency as that is what gold is inherently.

With the euro now below $1.26, $1.2150 to $1.2250 is now in the cross hairs of the shorts.

How deep do you think the entire Western world problems are when a trillion dollars of shock and awe publicly falls flat on its ass? The answer is incalculable and beyond reprieve.

Some commentators are talking a euro at par to the dollar. I assure you that would be the end of the union and the beginning of the attack on the dollar that is certain to come.

If you have the emergence of national European currencies as a result of the failure of the union, the mirror image strength of the dollar would instantaneously disappear. Credit Default Swaps would turn its vengeance on the dollar. The Drachma would be incinerated. The Swiss and DM would be the stronger units.

If the EU fails so does the USDX. With no mirror image to hold up the dollar artificially the US dollar will fall faster than Greece’s credit.

Financial TV had an interesting interview that rated the chance of so many investment bankers having a perfect quarter with no loss day as one in a few billion. This proves that the audacity of these people is beyond the beyond. That type of trading record is simply impossible unless you are cheating. When it speaks of 100 million dollar profit days you have to be stealing big time.