New Reserve Currency
Gold crashed through $1000/ounce today, and struck $1008 on the way. Gold pulled back during the day, but maintained a gain for the day.
The Dollar crashed to the lowest levels this year; losing over 2 cents against the Euro. Taken together with the Gold move, you can see that something fundamental is happening in the markets.
Oil and gasoline hit the upward bias big time today, as their prices spiked.
Stocks and bonds moved sideways, with stocks having an upward bias.
In the news today…..
New Reserve Currency – is being pushed by the UN. They want to scrap the Bretton Woods Agreement which made the US Dollar the Reserve Currency for the world, and replace it with a new “world currency.” The drumbeat of replacing the US Dollar as the world’s reserve currency continues through the UN after China and Russia have stated the same – but with different solutions to the replacement.
World’s Most Competitive Nation – used to be the USA, but the financial crisis kicked the US off the pedistal. The World Economic Forum votes each year on the competitiveness of each nation and ranks them. The US has been the top of the heap forever, but has now been kicked down to number 2 by Switzerland. Number 3 was Singapore. I view this as something we should just get used to. The US is falling in many of its dominant positions around the globe, and competitiveness is just a sign of the times.
US Debt Ceiling – Obama has asked the Senate to raise the Debt Ceiling to $12TRILLION, as we are going to spend $1.6TRILLION more this year than we are bringing in. This is just another sign of our demise. Owing this much debt locks the hands of future generations who must pay it back, and locks the hands of future politicians who must pay it back. What if we don’t pay it back??? Well, we are seeing exactly what happens. Did you see the US Dollar drop to its lowest EVER level today???? We are broke, and the world knows it.
Here are the last numbers for today (about 40 min before closing):
Dow Jones 30 Industrial – 9496 (up 54 points)
10 Year Treasury Bond – 3.47% (up 0.03%)
Euro – $1.4501
Gold – $996 (up $1)
Oil – $71.10 (up $3.08)
Gasoline – $1.83 (down $0.05)
