The Careful Gambler

July 17, 2009

Careful Gambler is packing for a summer vacation, but wants to alert his readers as to critical dollar developments.

From his Feb 14th 2009 posting he wrote: “A break below 80 on the DXY would almost certainly cause a test of the low 70’s low. Breaching 70 in this environment of bank insolvency, investor fear and uncertainty would be catastrophic and extremely disruptive to all the markets except physical precious metals. If and when the 70 level is breached is beyond CG’s scope at this time. But if this tsunami wave appears on the horizon CG will alert his readers.”

Here is your early warning: THE TSUNAMI WAVE IS VISIBLE. The dollar is fractions of a penny away from a further slide of about 10% in value. It has toyed with the 80 level and seems to have given up the ghost this week with a couple of dramatically lower closes. It is now at 79+ and worse, (if you are a dollar bull) gold has regained a lot of momentum by moving back to $940. Though this weak dollar move may actually affect the stock market positively, it would likely have a multiple positive effect on mining shares and on commodities in general. A move 10% lower does not automatically translate to a 10% rise in gold at all times, but it did gold would be priced almost exactly at its all time high of $1033 / oz. But an even safer and potentially more profitable trade is to consider buying a blend of silver, palladium and gold instruments (physical, ETF’s and mining stocks). For example, silver is still largely undervalued from it’s high of $21 / oz. relative to gold. Palladium is severely depressed due to the buyers strike in automobiles. Btw, King Hussein Obama, a hint… No thanks on GM! Lovers of free market capitalism (the only system that works) like CG don’t want a Government Motors car competing with REAL automobile companies at our expense and we’re not thrilled about preserving UAW pensions when the UAW was one of the culprits in GM and Chrysler’s own bankruptcies. But, we all know you have political pay backs to the unions. But please, don’t tell us we need to conserve when you are simply transferring our wealth to your political cronies. This is not change, it is status quo and you have misrepresented your objectives.

Back to the markets…the longer gold holds above $900, the stronger the case that the pattern below was just a classic correction that is now gaining momentum for a MASSIVE upside breakout. Check out the chart. You’ve seen this pattern time again in teis gold bull. Why should the outcome be any different this time?

However, the chart below in Yen shows that there has been a flood of safe haven money now also pouring back into certain currencies that are not running the scale of deficits that America has. Though the break of gold below 8600 Y/oz. was bearish, the real support is around $8000Y/oz. As long as gold holds above this level the case for the gold bull in ALL currencies is still intact.

Look, CG proclaimed a “bummer of a summer” in 2008, and you can all see how things deteriorated progressively all the way through the election. You can all see for yourselves that our Executive and Legislative branches are run by buffoonish idealogues…No wait, that is too kind…radical, incompetent liars. You can all see the dollar being destroyed. For heaven’s sake – THIS IS THE OBAMA PLAN! IT WAS THE BUSH PLAN for the dollar. Remember, just like King HO, Bush talked strong dollar as it plunged 6 out of 8 years of his presidency. The end result of this will of course be worse for our standard of living, but don’t waste your time trying to convince “koolaid liberals” now. Their approach is to ignore facts, ignore charts, blame Bush ad infinitum for every American ill. They have already made up their minds what the problems are, even invented problems that were nonexistent and then how to remedy them. Debate? Why debate? There is no time for debate. Remember…We are in a crisis! Quick, do something, anything now, now NOW!

The bottom line is this: if you are reading this, you are interested in educating yourself to an alternative voice that actually resonates with something lacking today – common sense. CG doesn’t need to tell you that a man and woman are the only two genders that when “mixed” can actually produce progeny. CG does not need to tell you that when money is leant at 7% and purchased at 0% banks will make phoney profits. And of course the world is a bit warmer when so much of it is paved with asphalt now. Neither does CG need to tell you how to hide your assets under this new Administration’s nose, but CG will tell you, you had better have a PLAN to do so or enjoy getting wiped out financially. By not telling you, CG is doing you a service as you will do what millions of Americans have done for centuries – innovate!

Fear not! Remember liars, thieves and thugs like we have in Washington today lack one critical element in their thinking and that is truthfulness and the lack of it has distorted their minds. People who have conditioned themselves to spreading and processing deceit have given away their ability to discern. Hooray for you! Hence, by default whatever actions you take, born of clear God-given understanding you will be one step ahead of them.