I Expect The Dollar To Be Weaker

As I have been saying, we have the biggest problems in the United States and so I do expect the U.S. Dollar to be weaker than these other fiat currencies and when they are sinking but the dollar is sinking faster that is when the price of gold can really take off. (SPDR Gold Trust ETF (GLD))

The Best Environment For Gold

The best environment for Gold is going to be when the weakest currency is the U.S. Dollar. Gold does well when all the currencies are going down but for some reason the U.S. Dollar needs to be going down the most. Because if the U.S. Dollar is going down more slowly than the Euro Currency or the Yen everybody assumes the U.S. Dollar is strong and Gold goes down which is an asinine assumption and obviously its not going to be able to persist that way. Ultimately gold has to go up.

Dow Jones: The 2,000 Points Relief Rally May Be Reversed

We were down 400 points in the last 2 days on the Dow Jones Industrials and remember the Dow Jones rallied 2,000 points off its September low. That is where it was when everybody thought the Federal Reserve was going to hike interest rates in September and when we got that bad jobs number we had a 2,000 points relief rally because the Fed was not about to raise rates.

And now what as been holding up the market was the idea that the ECB was going to come in with all this money printing. But now that we are not going to get that and people still expect Yellen to raise rates, well, we might lose the entire 2,000 points relief rally in which case the rate hike is back off the table as if it was ever on the table in the first place.