Tuesday, March 10, 2009

US Dollar Collapse - FED's last battle. DXY, GDX, HUI, XAU, SLW, RMK.v, TNR.v, BTT.v, GBN.v,

US Dollar continues to pretend, that US Corp is healthy and if this health is not ultimate one - at least it is relatively sober. Fundamentals are screaming different picture: with 2 trillion deficit pushing 16% of GDP and insolvent banking system - US Dollar is long time due for a hard fall back on the long term downtrend line. Bernanke must be using his Hard Artillery now: USD above 92 means Deflation and guys like CitiGroup below 1 USD. The only hope is to bring Inflation and weakening US Dollar will confirm it. Gold is taking a breath before battling for the new highs and providing another Entry point, this time down the food chain Junior Mining will be the right choice.
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