Gold price soars, U.S. dollar falls, what is next dollar free fall?

[whistle]

The New York Board of Trade's dollar index, comparing the U.S. currency against six primary peers, including the yen and the Euro, touched 78.398, the lowest since September 1992!

The Fed's major trade-weighted dollar index dropped to 74.78 yesterday, the weakest since its inception in 1971!

The dollar fell against 15 of the 16 most traded currencies, only gaining against the yen. The dollar fell a full 5% against the Australian dollar.

The Canadian dollar (also known as the "loonie" after the bird metal dollar coin), reached parity with the U.S. dollar for the first time since the commodity boom of the 1970s.

Do the "loonies" at the Fed have any idea what they are doing?

They seem to have created the perfect storm with inflation and lower interest rates.

Thus, the price of Gold could be expected to continue rising as the Fed's rate cut creates fears of inflations. The gold price hit a 27 year high this week at $737 an ounce. There is now the potential for gold to reach the all-time record of $850 which happened in December 1980, when speculators drove it up-wards in a parabolic rally at the end of the great inflation crisis which followed the close of the Vietnam War. After gold goes through that barrier only the sky could be the limit.

*EDIT: gold soars from gold sores which is how I feel because I don't own any :eyes:
:yoiks:

[skids]

1. This week should be really, uh, "interesting" n/t

[knitter4democracy]

2. No inflation here. Nope. Not here.

Rising food prices, rising gas prices, rising costs everywhere but in housing (in most of the country, and so less equity). No inflation, though. Nope. :eyes: Stupid cooked government books. I'm stocking up, personally.

[Joanne98]

3. If Saudi Arabic unpegs their currency. Watch out!

[Warpy]

7. If China allows the Yuan to float, watch out!

Everything will likely inflate about 20% overnight, from toasters to t-shirts.

[Joanne98]

14. That to!

[Eurobabe]

4. Jeez, I heard the euro hit 1.41 on Friday

unbelievable. I keep thinking the dollar can't go any lower, and it continually proves me wrong.

This is quite worrisome. For all. :scared:

[whistle]

9. That is because of the dip-shits in charge

[Eurobabe]

11. honestly I think NO ONE is in charge, that's the problem

they're too busy finding ways to bankrupt us. :mad:

[pretzel4gore]

5. yet the stock market surges!

somehow, God is great, the bastards are finally, praise the Lord, caught in a web of their own weaving, and, hurray for Allah, the roaches are caught hanging in the air, kicking furiously in vain, thank you Jesus, with all their larcenous trickery that was meant to defraud the starving babies in africa asia and the south bronx etc suddenly glued in the spotlight with the inexplicable reaction of the stock market to disasterous news making obvious even to simpletons the fix is in and THEY CAN'T GET IT OUT! Oh my God....let them be caught, and never again free of their evil deeds!

[whistle]

10. Yes, and we common folk just have to keep low and out of the way

[pretzel4gore]

17. everything is ours...

noone believes that, but it's fact. It chills mr pig, it's so stark and, it appeals to the lowbrows, the freepers, among us. Everything on earth belongs to us. Mr pig roots and spews and plots and robs at our discretion- but every dime on earth is ours. And none of it is hidden. It's all there, in the bank, all waiting to be put to work for us. $75 trillion, and that in cash. If THEY don't like it, let's send 'em to Mars, or to the golden asteroids (we'll need colonists in a few years, for the mines etc) They have crapped in the soup long enough. Fukkem

[Warpy]

6. I only own what I inherited as jewelry

Gold has several problems: first, it generally keeps pace with inflation, it never outstrips it for long. That means you're not in any danger of making money by holding gold unless you are very, very good at playing the futures market. Second, it's hard to store because it's heavy and attractive to thieves. Forget about that safety deposit box at the bank, DHS has been handed the right to rob it should any sort of unspecified national emergency arise. Third, in times of true economic meltdown, you could very easily find yourself trading an ounce of gold for a sandwich just so you can live one more day--it happened in the Depression.

Volatile markets always bring out the gold bugs, and that's what's happening now. The general trend for gold is up because inflation is not going to go away, but when gold's rise in price exceeds the inflation rate, the gold market has a nasty habit of taking a dump when the smarter gold bugs unload.

However, suit yourself. Caveat emptor.

[whistle]

8. So, who owns the gold and how much is there in the world?

, I heard that 120,000 tons has been taken out of the ground and thus in circulation while only about 30,000 tons remains in the earth much of it extremely difficult to extract. Can anyone substantiate this?

[Flabbergasted]

12. Bernanke is attempting to keep the banks from going out of business.

[BlooInBloo]

13. Woot! End Days!!!

ka-ching. Nickel for me.

[SammyWinstonJack]

16. ..

:evilgrin:

[Horse with no Name]

15. Gold prices are going up

But silver prices are going up faster.