Dollar tumbles on report of its demise

Those that think Cliff High was out on a limb and his Webbot was full of it not so much here but on another forum . will Cliff predicted that something would surface on Oct 7th today this comes from the UK and voir la make your own conclusions.

http://www.independent.co.uk/news/business/news/dollar-tumbles-on-report-of-its-demise-1798713.html

Dollar tumbles on report of its demise
Gold price at record high as Independent story sends global markets into a frenzy

By Stephen Foley in New York
Wednesday, 7 October 2009
AP


The price of gold is surging on world markets amid fears that the old economic order based on the supremacy of the US dollar could be breaking down.

A new spike has sent the cost of the precious metal to a level not seen before. The dollar slid sharply after yesterday's report in The Independent that Gulf Arab states are secretly planning to stop trading oil in dollars, and a senior UN official said that the US should be stripped of its position as the main source of currency reserves for other countries.

The developments come on top of speculation that the Obama administration is operating a policy of benign neglect of the dollar, engineering a devaluation that could help repair some of the economic damage caused by the recession.

http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html

Not since the collapse of the Bretton Woods system in 1971 has gold been treated as the equivalent of a world currency, but The Independent reported that it could form part of a basket of currencies that would be used for oil trading by the end of the next decade.

Aram Shishmanian, the chief executive of World Gold Council, said: "The financial and economic instability of the past 18 months has brought gold's historical role into sharp focus and has continued to increase its prominence among policy advisers, central banks, and investors around the world.

Across the world, investors have been reaching for gold as an alternative to the dollar and to other US assets, fearing that the American currency is headed inexorably lower.

The dollar index – which measures the greenback against other currencies – fell 0.7 per cent yesterday and the dollar was lower against all major currencies except the British pound.

The US government's debt – which stands at $11.86 trillion (£7.45trn) after tax revenues collapsed with the recession and the Treasury spent billions on propping up the banking system – would be easier to repay if the value of the dollar was lower. Economists noted that the US resisted pressure to include a promise to protect the stability of world currencies in last weekend's communiqué from the International Monetary Fund (IMF), sparking growing concern that the Obama administration could be content to see the currency fall. That would make US exports more competitive and could spark a manufacturing jobs revival.

Overseas governments are in a bind because they hold trillions of dollars as reserves to protect them against a financial crisis. They are seeing the value of those reserves decline, but starting to swap them for gold or other currencies could deluge world markets with unwanted dollars and send the value of the greenback even lower. The situation is particularly sensitive for oil-producing nations, who are paid in dollars for their exports and therefore hold high dollar reserves.

Gulf Arabs have begun planning – with China, Russia, Japan and France – to move from dollar dealings for oil to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new currency planned for nations in the Gulf Co-operation Council, which includes Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean oil will no longer be priced in dollars. The revelation was met with public denials yesterday. The Saudi central bank governor, Muhammad al-Jasser, said: "The future is in God's hands. Today, the conditions are good for the arrangement we have." The Japanese Finance Minister, Hirohisa Fujii, said he "doesn't know anything about it".

Dennis Gartman, the US investment guru who writes the daily Gartman Letter, said that no one should be surprised to hear denials. "We are certain that spokespeople for every single nation will be brought to the fore to deny that any such meetings have occurred, that no such decisions have been made, that it is not in anyone's interest to have held such meetings or made such decisions," he told clients as The Independent story broke. "The market will care not a whit."

Simon Johnson, the IMF's former chief economist, said the countries involved would calculate that it was not in their interests to drive the dollar down by eroding its position as the currency of international commodities trading and central bank reserves.

"It would only be great news for the US. The US would love a little bit of devaluation, even though they can't say it," he said. "They have to pay lip service to the strong dollar policy, but if someone else were to engineer a devaluation, that would be lucky break for the US."

I never thought Cliff was way off, but I sure am praying that the branch sways the other way......Thats what we need to do, think positive and I'm sure even Cliff will be smiling if the big push in the other direction happens.

Thanks for sharing NB

Interesting article...thanks NB

Controlled market destruction - remember? We all knew it was happening - We didnt need Cliff High (accurate or inaccurate) - all that is going on is that the process has moved to its next phase.

The wild card here is that the powers that were think they can control this - they cant.

A..

GOLD: Breakout Alert - Powerful Uptrend Imminent - target and trajectory

Originally published October 6th, 2009

The impending gold breakout has been so long in the making that it has engendered a "we'll believe it when we see it" mentality amongst most market participants. What this means of course is that most will miss out on the big easy gains that will accrue during the dynamic phase of the next major uptrend and will turn up late at the party, as usual. We ourselves have had lingering doubts engendered in large part by the perceived risk of a dollar rally, but these doubts are now dissipating for reasons that will be set below.

When you follow something on a day-to-day basis, or even an hour to hour basis, it is easy to slip into a situation where you "don't see the wood for the trees" and the best way to combat this natural tendency is to zoom out and look at long-term weekly or even monthly charts. So that is what we will do now.

On the 5-year weekly chart for gold we can see that everything is now in place for a MAJOR RALLY in gold to commence. It has managed to hold the high ground for weeks following its upside breakout from a Triangle, and is repeatedly pushing at the resistance approaching its highs. Yesterday's action was strongly bullish. With all moving averages in bullish alignment, THIS RESISTANCE IS ABOUT TO FALL
http://www.kitco.com/ind/maund/oct062009_gold.html


Gold price hits record high on report to ditch dollar


LONDON (AFP) – The price of gold struck an all-time high Tuesday as the dollar fell on a news report of a plan by Gulf states to stop using the greenback for oil trading.

Gold hit 1,045.00 dollars per ounce on the New York Mercantile Exchange in late trades.

Hours earlier on the London Bullion Market, gold surged to 1,043.78 dollars beating the previous record high of 1,032.70 dollars an ounce struck in March, 2008.


http://news.yahoo.com/s/afp/20091006/ts_afp/commoditiesgoldmetalsprice

Thank you Simultanoues freinds!!! WOW!!! Very very interesting stuff!!!
... Nothing like being better prepared for what ever may or may not come about!!!

Thanks again!!! :)

what was gold usually at?

Death of Petro-Dollar, Told Ya So




http://www.kitco.com/ind/willie/oct082009.html


THREAT FROM END OF PETRO-DOLLAR

The end of the de-facto standard carries enormous consequences. Two structural pillars have kept the USDollar in its primal position. Banking sysetms across the world are built around the USTreasury Bond reserves storage and management. Purchase & Sale of petroleum is conducted in US$ terms for almost all transactions globally. The former has been under attack for several months, as diversification of reserves is the theme. The latter will next be under attack for a couple years, as abandonment is the theme. Few seem to acknowledge the ‘Other Side’ to the Petro-Dollar de-facto standard. Sure, Saudis led the entire OPEC to price and sell crude oil in US$ terms. But the other side to the deal has been military protection for the Saudis, but also the Persian Gulf nations generally. The ravaging of Iraq can be seen as example of such protection. The Saudis must soft soap and tap dance in denials, so as to avoid a sinister attack of their nation. A Chinese banker has a great quote cited by Fisk in his article. He said, “America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate.” Or possibly the shattering noise from its total avoidance!!


GOLD BREAKOUT COMES IN SLOW MOTION

The biggest object investments to the newly hatched Dollar Carry Trade are gold, crude oil, and perhaps the long-term German Bund. Gold has a share of the investment using free US$ money borrowed at near 0%. The US$ inherent risk is minimal, since carry trade players will ensure the US$ decline, even strong-arm policy makers. The USFed will thereby fund the demise of the USDollar with free money, as Saudis, Russians, and Chinese manage the global abandonment project. Gold is breaking out. It is doing so at the slowest possible pace in order to minimize the passengers aboard the train, in order to maximize the acquisition of physical gold by China. They do NOT want a rapid rise during their powerful and very hidden accumulation. Recall that China is in control of the gold price nowadays, since the US-China trade war has its central feature the battle over Gold and the USDollar in global banking supremacy.

Gold is working toward the initial 1130 target. The next important target remains 1300 on the horizon. Then comes the moon shot! They will both come as sure as the sun rises. The USTreasury bubble is finally being recognized as the biggest bubble since US housing. It has no future upside, only downside. The USTreasury bubble constitutes a feeder system for Gold & Silver, alongside the Dollar Carry Trade. The financial networks offer humorous downplay of gold, as they continue in their failure to recognize the broken USDollar, the bubble in USTreasurys, the broken US banks, the broken USGovt finances, and the broken US homeowner, and probably the broken US industry.

well i still say..you can't eat gold..and when folks are hungry and wet and tired and such they aren't going to want it either
so what the f*** good will having it do you

you'ld be much better off with seeds or blankets..stock pile some of those..or clean water
think primitive camping and then you'll be ready and rich..
as usual just my not so humble opinion again

Ya eating gold is a little hard on the teeth.

My main point of posting is to illustrate the fact that the US dollar is doomed, and that what we are seeing is the start of the end of the US economy. Always like to have solid proof rather than saying "I believe".

Wealth and gold are certainly part of the old paradigm. For those that are unable to pack away some essentials and have their own gardens etc, having gold may be their only option.

There will be people that are more concerned about material things that will be willing to trade gold for food, blankets, health care items etc. This will be the unprepared group that haven't looked up to see the real world.

This whole thing reminds me of movies like Indiana Jones where the greedy guy that always goes back to get the gold and riches ends up being killed off, and the ones that are more concerned about saving their skin make it out.

i am enjoying this "i told you so" moment with my ex...
when i was talking to him after the holidays last year, and
gold hit $750, i told him to invest in it as he watched his
stock portfolio investments shrink.... now gold is what -
over $1100 and going up.... the info george green and gerald
celente gave us well over a year ago resonated with me and
it seems my resonator was on track

M
i wasn't trying to slam you..sorry if it came across that way..
i just can't figure where anyone would think that gold is the answer..
and all the talk of the dollar being worthless is almost funny
cause it's been worthless for a long time..
it's only since someone wanted to change the code that it is being reported as worthless
if we had gone to fort knox years ago i think all we would have found was cob webs


edit cause can't speel for sheet..sigh

If you have done everything else prepper wise, then having some gold seem to be to be a valid idea. There maybe some ugly transitory invonceniences at the fringes of the old paradigm that a few oz's of gold would get you past easily.

If you are "investing" in gold its different. Unless you have gold in your own physical custody I think you could be dissapointed when the time comes to take delivery.

A..

There is junk silver you can buy. It is the recalled silver dimes from a few years ago. The dimes come in a five gallon bucket.

I guess if you have a place to live when money crashes, at least people would recognize the silver American dimes and take them from you in trade for goods you may need.

Just food for thought.

I agree. I think since they push gold so much, silver could be the ticket!

Any metal copper what ever will be worth some thing That is why China has bought up billions in all types of metals