Wednesday, 19 September 2012

The Printing Presses Are ON

Bernankenstein has finally caved to the vested interests and is going to start printing money again. This is going to be an end game move. Collapse of the US dollar?

Marc Faber on Bloomberg:

Gold and Oil

This is a must read:
BofA Sees Fed Assets Surpassing $5 Trillion By End Of 2014... Leading To $3350 Gold And $190 Crude

My commentary on Gold is bullish on this and you can confirm that here: Gold Tags.

Back on the 12th May 2012 I posted Eric Sprott Discusses Gold Manipulation On CNBC

Hows that flag going?

Is it going to be a repeat of the 2008 flag?

How did we go? BINGO! Now, will we see a consolidation pull back to say the high $1600s before continuing climb?

Weekly Gold 19th September 2012

QBAMCO argues for $15,000+ as an eventual price target (that makes me dizzy thinking about it) as posted in Perspectives On Gold's "Parabolic" Catch-Up Phase.
Were a USD devaluation and re-pegging to occur as of the end of 2014, following 2 ¼ years of $40 billion monthly MBS debt monetization, we estimate our Shadow Gold Price would approximate $15,000/ounce. (The SGP divides the quantity of USD base money by the quantity of US official gold holdings, as per the Bretton Woods monetary regime.) Over the weekend, Bank of America analysts implied USD base money inflation would increase much more than the Fed announced, to about $5 trillion by the end of 2014. This figure would imply an SGP a bit over $19,000/oz.

The Ridiculous Argument On $AUD Intervention

Meanwhile, bozos like Warwick McKibbin, ensconced in their ivory towers of academia complete with walls papered with failed economic theory and many associated sycophants, propose intervening in the Australian dollar. Here is a gem: How the RBA should clip the dollar

So what happens if we clip the dollar to to say 80c and Oil has jumped from around $100 a barrel to $200 a barrel? Australian consumers and the road transport industry paying over $3/Litre at the pump is what happens.

Sure the high $AUD hurts manufacturers but think about $200 oil and a FALLING $AUD. Sure as daybreak, if the US Fed collapses the $USD, oil will go polaric.

Force the $AUD down whilst Oil doubles and the next boom will be the noise accompanying the immolation of the Australian economy.

Leave it alone fools.

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