Today’s Dollar movement is clearly interventional (likely some combination of the US Japan and China and Europe) because the dollar is up and gold and silver are fully under record massive short positions by a small handful of the largest US and UK member banks of their respective central banks and on a day when we are seeing a Surge in Wholesale Inflation. That is a dead giveaway to me.

The central banks constantly use management of perceptual economics (MOPE) tactics to cover economic facts and manage markets. One of their favorite games is “shoot the messenger”. Gold and silver, as the last form of real money (un-encumbered by massive counter party entropy) are the primary and most manageable tool (given their tiny market size) relative to the major currencies, but gives them real perceptual bang for their buck (to those not fully aware of the works of the gold anti trust action committee (GATA).

Additionally, there are many signals in the field showing that sovereign debt is increasingly risky and that debt levels among the largest currency manufacturers is rising as the debts among those in the basket of currencies are all not repayable at current currency valuations (relative to real products and real money gold and silver).

Short term, these central banks can cause these fluctuations but looking outside these fluctuations, the whole basket seems to be less and less safe and as more and more of the wealth begins to realize how the wool is being pulled over their eyes it seems to me very likely that wealth will want to get parked in the safest haven of all and take possession of physical gold and silver while it can still be had. When this happens, then perhaps the correlations will paint a truer picture of the underlying economic problems that were caused and continue to be caused by disabling the checks and balances which now enable unlimited debt regardless of whether it can ever be repaid and they also have the power to manipulate perceptions through control of their economic reporting, and what I believe are far more ubiquitous manipulation of all sorts of markets on a daily basis.

Also missed is the fact that unlike the dollar, yen, pound and euro, gold is the only money with out the massive debt based counter party entropy.

In my opinion the a handful of major member banks of the US and UK central banks and possibly some of the other Euro banks are increasing their short positions in gold and silver to record highs in order to manage the perceptions alluded to this article, the keen observer will notice that on a day when US wholesale prices are surging, the dollar is too and gold and silver are being held in check.

This tells me that all these movements are purely interventional even as the fundamentals are painting an entirely different picture.

US, UK and other sovereign debt is incumber increasing risk in my opinion and the relative entropy to the currencies in the short/intermediate and intermediate/long period is accelerating.

Given that interventional efforts are at best delaying tactics, the whole basket of currencies against which far too much emphasis of the relative values is based may fluctuate, real money will become the natural landing place for wealth as the turbulence straight ahead looks very bad, when looking at US commercial real estate defaults and more importantly the massive backlog of shadow inventory not making its way into the real estate reports as well as the stealth inflation, hidden by governmentt statistical hedonics and other neat math tricks discussed the likes of Shadowstats.

Duffminster
http://www.duffminster.com/SilverandGold

Thanks for posting!!