“Woe to the land whose king is a child and whose leaders are already drunk in the morning. Happy the land whose king is a nobleman, and whose leaders work hard before they feast and drink, and then only to strengthen themselves for the tasks ahead”. (Eccl 10: 16-17)


"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat


Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


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Wednesday, April 27, 2011

HUI still trapped below 600

FOMC gives Precious Metals Bulls reasons for cheer

The market has obviously interpreted the FOMC news and the comments from Fed Chairman Bernanke as a signal that they are unconcerned about the effect of their policy on the US Dollar, which is sinking further into the abyss. This has traders and investors moving strongly into the gold and silver markets, with gold soaring into a new all time high in nominal terms and silver shooting up a whopping 5%.

Meanwhile, the Dollar has now convincingly broken down below critical chart support near 74 on the USDX and looks on target to sink as low as 72. I have said it several times here on this site and over at jsmineset - if the Dollar breaks down below 72 on that chart and cannot recover that level within a couple of sessions, we will be witnessing the historic demise of the currency and the probable end of its role as the global reserve currency.

Thanks Ben and thanks to all the Fed governors whose foolish, inept, and short-sighted idiocy has set this nation on a path that will make the IMF prediction of its sliding into second place behind China, indeed come to pass. No nation ever kept its place of economic ascendancy by deliberately killing its own currency. An economically strong nation, with a solid manufacturing sector, the rule of law, an ethic of thrift, low taxes, reasonable regulation, etc, will by default have a strong currency.

The plight of the Dollar is now a commentary on the decline of our beloved nation. It speaks with a more pure voice than any analyst could ever aspire to and what it is crying is disheartening to an extreme for those with ears to hear it.

History has the advantage of being relatively objective in its analysis as it is removed from the passions of the era. It is with that in mind that I can confidently say it will render a harsh and severe criticism of those who led our nation and its monetary policy during this period as they presided over its decline.