The dollar is the only story right now

    Posted by puma on 11th of May 2011 at 03:47 pm

    I don't think anything can stop

    Posted by jtverr on 11th of May 2011 at 03:54 pm

    I don't think anything can stop hyper-inflation at this point.  Right now, the FED is just stalling for time.  Reading "Surviving the Economic Collapse" by Fernando "Ferfal" Aguire...

    how about a collapse of

    Posted by dylan398 on 11th of May 2011 at 03:59 pm

    how about a collapse of the Euro..

    No dylan398, not even a

    Posted by jtverr on 11th of May 2011 at 04:03 pm

    No dylan398, not even a collapse of the Euro will save the dollar...as a matter of fact, my sources tell me that if the Euro fails, then the dollar will follow 2-3 weeks later.  So, IMO and the people I follow, a collapse of the Euro would be an ominous sign for the dollar!

    You might look into new sources...

    Posted by lessarda on 11th of May 2011 at 04:16 pm

    I'm not arguing the long term picture, but that's not what we're trading today. The inverse correlation between Euro and US$ will last until there's a dominant new reserve currency. Gold is certainly #3 now for reserves, and the Yuan might get into the game over the next decade. History is pretty clear that reserve status stays with the dominant military power (ask the British), and unless and until China surpasses us militarily, the dollar will hold the reserve status.

    Hyperinflation can happen suddenly (ask the Germans) and the velocity of money in the system is certainly something to watch for. There are still strong deflationary components that are working against it, especially housing and labor, but it's not something to be dismissed as impossible. It's hard to say whether that would bring a correlation between the $ & Euro immediately, but it could certainly move gold higher in price and reserve status.

    Great Post lessarda

    Posted by sanrafael on 11th of May 2011 at 04:31 pm

    Thanks for the perspective!

    I very fine with my

    Posted by jtverr on 11th of May 2011 at 04:26 pm

    I very fine with my current sources, thank you.

    Jtverr, if the euro collapses,

    Posted by kalinm on 11th of May 2011 at 04:11 pm

    Jtverr, if the euro collapses, and the dollar collapses.... where does the money go?  Certainly silver right now is tipping the hand of the people who might get squeezed..... I don't think that euro money is going to silver.

    where does the money go? 

    Posted by jtverr on 11th of May 2011 at 04:29 pm

    where does the money go?  The money left town in 1971 when we lost what was left of the gold standard...thank you Dick Nixon.  The money is gone....they stole it from us.  There's only gold and silver and the sooner you get some the better for you and your family.

    Why hasn't bimetallism worked in the past?

    Posted by lessarda on 11th of May 2011 at 04:39 pm

    It was tried on a large scale in Europe in the 1860's. William Jennings Bryan pushed hard for it here (the "cross of gold" speech & his presidential run). The Wizard of Oz book is all about it (Dorothy's slippers are silver in the book, not ruby). But it hasn't worked yet on any scale, either because of silver's industrial use, its decay or the challenges of coinage, ratios and prices. Any ideas or more historical perspective?

    btw, who are your sources?

    Posted by ranger on 11th of May 2011 at 04:09 pm

    btw, who are your sources?

    www.infowars.com

    Posted by jtverr on 11th of May 2011 at 04:15 pm

    if € collapses so will $?

    Posted by jdwm on 11th of May 2011 at 04:06 pm

    I think you're right;

    Posted by sankaty on 11th of May 2011 at 03:50 pm

    the VIX doesn't seem nearly as big a deal on this pullback. Dollar is what I'm watching, and news of the EU bailouts.

    Steve, Matt - what do

    Posted by puma on 11th of May 2011 at 03:51 pm

    Steve, Matt - what do you make of the relatively well behaved VIX today?

    If the market declines and

    Posted by cwa82675 on 11th of May 2011 at 05:14 pm

    If the market declines and the vix doesnt move higher it signals people are buying the dips rather than getting fearful.  The marketmakers will take the market down to the point where people get fearful.  To me the vix not spiking today signals we are going to have a few more nasty days real soon, and they wont stop until the weak hands get fearful.

    puma, I was looking at this

    Posted by tom on 11th of May 2011 at 04:24 pm

    puma,

    I was looking at this earlier.  I think the one implication is that people are less "fearful", right, but then I but my skeptic hat on and I think there could have been some lightening of positions as well as more aggressive hedging on the recent rebound.

    I couldn't frankly say for sure but I am leaning more to the latter.  The interesting thing is that either could ultimately have the same effect because if the selling happened or the positions are hedged then people are less "fearful" during the decline.

    puma - its certainly a

    Posted by steve on 11th of May 2011 at 03:47 pm

    puma - its certainly a big part of things.

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