For months and months I've been warning
investors that the dollar was going to come under extreme pressure sometime
this year. I expected it to probably happen in the spring. Many people
thought I was nuts. They were sure it was the Euro that would collapse,
despite the fact that the EU is doing everything they can to protect their
currency while Bernanke is doing everything he can to destroy ours.
On Friday the last confirmation occurred to signal the final collapse is now
underway. On Friday the November yearly cycle low was violated. Cyclically
this event is a major catastrophe.
are now going to see the dollar get absolutely hammered for the next couple
of months. The viability of the dollar as a currency will be questioned.
There is a decent chance it may start to lose its status as the world's
reserve currency. (Coincidentally about the time everyone becomes convinced
the dollar is going to hyper inflate that will be the point where the three
year cycle low will bottom and we will see an explosive rally, along the same
lines as what happened in the latter half `08.)
This is what all the top pickers in gold and silver fail to understand. They
are all trying to call a top based on charts without any understanding of
what is happening to the currency.
In a currency collapse the market will flee into assets that will retain
their purchasing power. Four weeks ago we went past the point of the stock
market being able to protect one from Ben's printing press any longer. So
buying stocks as protection is no longer a viable solution.
Four weeks ago spiking inflation rose to the point where profit margins are
now being hit. Ben will no longer be able to prop up the stock market by
further debasing of the currency. Stocks have now decoupled from their
inverse correlation with the dollar and will now follow the dollar down.
more Ben prints and the faster the dollar collapses, the faster the stock
market is going to fall...and the quicker the economy is going to roll over
into the next recession.
What will happen is that liquidity will rush into the commodity
markets as the only true protection against the accelerating currency crisis.
This is why one has to ignore the top pickers and chartists. Overbought
oscillators and stretched conditions are meaningless in a currency collapse.
This is all about fundamentals. It's about protecting your purchasing power.
You can't do that by exiting the one sector fundamentally best suited to
protect you during this storm, which are the precious metals.
Now isn't the time to be selling your gold, silver or mining stocks,
it’s time to be buying more.
For the next couple of days I am going to run a special on the 6 month
subscription at 20% off the normal price.
6 months should be long enough to get investors through the currency crisis,
allow you to ride the final parabolic spike in gold and silver (C-wave
finale), avoid the inevitable crash (D-wave correction) that always follows a
parabolic move, and then get long again at the bottom in preparation for the
next major wave up in gold.