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While the debate continues whether inflation or deflation will be the dollar’s eventual fate, the Federal Reserve is pursuing a pernicious policy that is insidiously debasing the dollar. This policy has generally been met with indifference, if it has even been noticed at all.

November 28, 2009 – In my last commentary about gold on October 25, I noted that “gold is a much different market over $1000 because of all the new players being attracted to gold.”  Since then we have seen a good example of what I meant.  Gold has rocketed higher, as is clear on theRead more

November 23, 2009 – Bull markets are marked by three distinct stages, and when gold climbed above $1,000, it only entered its second stage.  In other words, gold has much further to climb in the months and years ahead. So don’t be misled by what you may hear or read in the mainstream media and even muchRead more

The Labor Department on Friday reported that headline unemployment in the United States has now climbed to 10.2%, a 26-year high. I use the word “headline” purposefully because the true unemployment rate is much higher.

From its 74.97 low in mid-October, the US Dollar Index has bounced 1.8%. Occasional swings of a percentage point or two are to be expected, as markets never move in a straight line. So this latest bounce is not significant and in fact is hardly noticeable on the following chart.

Bear market rallies in the Dow Jones Industrials Average

October 28, 2009 – It wasn’t too many decades ago that the dollar was, as the saying went, “as good as gold”.  It was a truism, almost too obvious for mention because everyone understood the dollar’s essential attribute, namely, that it was redeemable into gold upon demand. This redeemability was a fundamental building block thatRead more

October 25, 2009 – Because people generally calculate the price of goods and services only in terms of the national currency of the country where they live, it is not easy for them to recognize what is happening to the value of the currency. To truly understand what is happening to the currency, they alsoRead more

October 25, 2009 – Gold’s ongoing consolidation in the $1045-to-$1060 area is very constructive to its ongoing bull market.  However, end of months are always very tricky because of option expiry.  The gold cartel writes a lot of calls in their market interventions aimed at capping the gold price.  As a consequence, they often bombRead more

October 21, 2009 – Evidence continues to emerge that the US dollar is headed for hyperinflation.  For example, consider why US stock markets are rising.  The Dow Jones Industrials, S&P 500 and other indices are not rising because the economy has started growing.  That won’t happen until employment stops falling, and there are no signsRead more