TYHEE GOLD CORP

(PRESS PROFILE TAB FOR FACT SHEET & UPDATES)

Free
Message: Re: Dollar Strength and Inflation - Crimson

Oct 23, 2008 05:40AM

I think the dollar is starting to break now. I'd say it peaked this morning. It couldn't get above it's high mark yesterday and now is falling. Perhaps it will fall very rapidly.

A contagion of currency implosion will happen just as the banks. So far everyone has rushed out of one currency after another. I think this is a problem for gold as it inversly follows the dollar which is measured against a basket of currencies. When the other currencies in the basket are falling faster than the dollar, the dollar appears to go up.

However, at some point as the currency contagion spreads, there will be a rush out of all paper money, as the dollar will no longer be seen as safe. Having said that, there has been so much damage to gold it's hard to know how quickly people will rush back into it.

Share
New Message
Please login to post a reply