AUD/USD, Currencies, Economy, XAU/USD No comments yet

Dodd-Frank Act

By on August 24th, 2011

The Dodd-Frank Act (officially denoted the “Dodd–Frank Wall Street Reform and Consumer Protection Act”) has officially put a bullet in the head of traders using the Forex market to trade precious metals. In what feels like a Twilight Zone episode called “Is This America?,” the politicos have effectively removed one more tool of the American public to protect themselves from the collapse of the US Dollar.

The Dodd-Frank Act effectively removes the right of Americans to trade precious metals on the Forex market. For years, gold and silver have been traded as currency pairs (XAUUSD and XAGUSD, respectively). Make no mistake…gold and silver are still traded on Forex. Americans just can’t participate.

This is nothing more than a veiled attempt by politicos and their banking cronies on Wall Street to force Americans to keep their currency denominated in US dollars under the guise of attacking the “evil speculators” who would dare to flee a collapsing currency of their own making. Do they really think Americans won’t notice?

Americans should elect only on liberty-loving elected officials who will reverse Frank-Dodd.

China, Currencies, Russia No comments yet

China and Russia abandon the dollar

By on November 24th, 2010

It should be no surprise to anyone following the decline of the U.S. Dollar, but China and Russia have made an agreement to trade with each other without using the dollar.

Here’s the story:

China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

Via http://www.chinadaily.com.cn/china/2010-11/24/content_11599087.htm

Just one more shot in the currency war being pushed by George Soros et al.

Currencies, Economy, ForEx No comments yet

Essential reading to understand the Currency War

By on October 7th, 2010

If you want to understand the present Currency War taking place, which is a “race to the bottom” for nations who want their own currency to be devalued, you need to spend ten minutes reading the following three essential articles:

  1. Currency Battle Could Start Hurting Corporate Earnings
  2. Currency War? Why Countries Are Rushing to Devalue
  3. Enjoying the Weak Dollar? You Could Live to Regret It

Let’s face it. Helecopter Bernanke is embracing QE and printing money, which can only end badly. Think hyperinflation, e.g. Weimar Republic.

China, Currencies, Economy, EUR/USD, Strategies, USD/CAD, USD/CHF No comments yet

Helecopter Bernanke should be careful what he asks China for

By on October 7th, 2010

The old saying that you should be careful what you ask for–you just might get it–applies in spades to Helecopter Bernanke’s pressure on China let the Yuan appreciate vs. the Dollar. Washington, D.C. has been throwing its weight around in diplomatic circles, trying to cajole China into “playing fair” and letting their currency float subject to market forces.

In reality, it already is floating subject to market forces; the question is how much the Chinese government is willing to participate in the market to manipulate the value of their currency.

Stay with me here. China, by all accounts, manipulates the value of their currency. But how do they do it? The answer: Via market forces carried out by government agencies. In America, we’d call them Open Market Initiatives. In other words, China is buying the Dollar in order to “control” the exchange rate to be where they want it to be.

Now, let’s say they stop buying the Dollar. And let’s say we get what Bernanke wants, which is a weak Dollar to theoretically boost exports. I believe we’ll get more than we bargained for, i.e. a crashed Dollar, not a weak Dollar.

Folks, USD is headed to much higher inflation, if not outright hyperinflation. It’s another government-created bubble. Are you prepared to protect yourself–and profit from it?

My strategy includes buying $EURUSD, and selling $USDCAD and $EURCHF. And buying gold. Don’t forget the gold bubble.

Currencies, Economy, EUR/USD, ForEx, Strategies, Trades No comments yet

They’re not very smart people, that’s why they’re in Washington

By on October 6th, 2010

This is a great short interview of Jim Rogers, legendary Wall St. guy. In it, he shares his contempt for Washington, D.C. hacks along with his view that world governments are headed down exactly the wrong path with their currency strategies.

In his view, they are printing money to solve difficult problems, but they are doing exactly the wrong thing. The answer? Own hard assets, like metals and commodities.

While he doesn’t fancy himself a currency trader and would not short the dollar, he does say this:

“The dollar is a very flawed currency. and is going to have problems over the next decade.”

Via Markets Soaring “But the World Is Worse Off,” Jimmy Rogers Says