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A number of key factors have fallen into place over the past couple of weeks. Unfortunately, together they increase the probabilities that the US dollar is headed toward hyperinflation.

May 25, 2009 – Since March 23, 2001, we have been holding goldgrams as our Core Currency Position. On May 4th traders sold the US dollar by shorting the Dollar Index at 83.97. Stop out this trade if the Index closes above 82.80. Since establishing this short position, the dollar has dropped 4.8%, which isRead more

May 25, 2009 – I would like to get short again, but the T-note did not bounce up to the level I was looking for. It was a sign of weakness, and we have now seen that weakness play out as T-note prices have collapsed. It would not be unreasonable to sell short here, butRead more

May 25, 2009 – Our patience is finally being rewarded. The precious metals are on the move, and higher prices are likely in the weeks ahead. While for months there has been every reason to be bullish about the prospects for both precious metals from both a short-term and a long-term point of view, weRead more

Occasionally the stock market gives important clues about its future direction. One way a clue can appear is through a divergence

May 4, 2009. Since March 23, 2001, we have been holding goldgrams as our Core Currency Position. The dollar remains within the same trading range that has confined it since last year, but importantly, its bear market rally is rapidly losing momentum. I have been expecting that the dollar will eventually break out of itsRead more

May 4, 2009 – On April 15th traders covered at 123-38/64 the Jun’09 T-note sold short at 125-20/64 on March 18th. The profit was 1-46/64. I would like to get short again. The contract has moved lower since we were stopped out, but is I think due for a bounce. The yield on the T-noteRead more

May 4, 2009 – The gold/silver ratio continues to hang on a precipice. I have written in the last two letters about the importance of the 68-69 area. So far the ratio has not broken below this key support level. I think it will. It just requires more time – more patience for it toRead more

May 4, 2009 – Markets always require vigilance and patience, but sometimes they demand even more. They sometimes require extraordinary patience. We are at one of those moments in time with regard to gold and silver. There is every reason to be bullish here about the prospects for both precious metals, both over the long-termRead more

I have explained in recent letters why I believe the US is on the road to hyperinflation. I think the writing is on the wall, but we will of course only know for certain in the weeks and months ahead.