Replies to post #9822 on GOLDBUGS AMEX Goldbugs Index (GOLD)

[SilverSurfer]

Race to Debase - Dennis Gartman on CNBC last night

http://www.cnbc.com/id/28523119

Race To Debase
Posted By: Lee Brodie

Is the dollar about to get a whole lot stronger or is the current run just about done?

Dollar Vs. Euro

On Tuesday, for the third day in a row the dollar rallied against the euro as fresh signs of economic weakness in Europe suggested that central bank would need to slash interest rates further the euro fell broadly, hitting a three-week low versus the greenback. "Markets do not believe the ECB can maintain interest rates above 2 percent for much longer," says Boris Schlossberg, director of currency research at GFT Forex.

However, the dollar's run might be done in the short-term, according to Dennis Gartman, author of The Gartman Letter. He tells us, “I don’t think the dollar will run a lot more versus the euro in the near future. It's already made substantial moves.”

Meanwhile, in Japan it’s a similar story. The dollar reached its highest level against the yen since December 1st. But, Gartman doesn't see a lot more upside here either. He tells us, "they will work to get the yen closer to par."



Other Currencies

What about other currencies. Is the dollar making gains on those fronts, too?

The short answer is, “yes.” Last week Russia devalued its currency for the 12th time in seven weeks. Also Venezuela is expected to devalue its currency 30-40% in order to maintain domestic spending programs. And Vietnam recently devalued its currency by 3% on concerns of weak economic growth.

The Trade

So how should you trade these moves in world currencies?

“I think it all goes to the benefit of gold [US@GC.1 848.9 -17.10 (-1.97%) ],” replies Gartman. In other words, he recommends taking a long position though he also says he’s anything but a gold bug.

[RBKissMyAs]

The Fed, no matter who the president is or which party is in control, is forced to box out of the corner. No choice. It's unfortunate that the last 8 years has come to this, but if the housing market is not sparked by any means possible, "blood in the streets" won't be just a phrase, it will be reality. Nobody would want to see it happen.

[RapidTrends]

al44,

I think it is certainly possible the Fed could revalue gold significantly higher. If you read Bernanke's papers, he practically praises Roosevelt for doing essentially that, and considers it the reason the US lifted out of the depression.

If I were a betting man, I would say thats part of Bernankes plan.

It would definately soak up all that newly created monopoly money.