tag:blogger.com,1999:blog-502356674750161309.post1999660440549566611..comments2008-11-30T15:37:47.610-08:00Eric deCarbonnelhttp://www.blogger.com/profile/08023745289801416061noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-502356674750161309.post-78647002821761284672008-11-30T15:37:00.000-08:002008-11-30T15:37:00.000-08:00The dollar's "safe haven" status is disappearing fast:<BR/><BR/>1) The repatriation by Hedge Funds from emerging markets into dollars is nearing an end, meaning the fuel behind the latest dollar rally is depleted.<BR/>2) Government bailout grew over 1 trillion dollars last week. In the face of such staggering money printing, the confidence in the dollar cannot continue.<BR/>3) Delivery notices on the COMEX are likely to push gold over $1000. Once investors realize that the physical shortage of gold is spreading to the COMEX, they will start to see gold as the true safe haven and the treasury bubble will burst.<BR/><BR/>The dollar and the euro can get hammered at the same time, especially if there is a broad move against the paper money of indebted western nations. The currencies of these debtor nations with trade deficits will depreciate against gold and the currencies of creditor nations with trade surpluses.Eric deCarbonnelhttp://www.blogger.com/profile/08023745289801416061noreply@blogger.comtag:blogger.com,1999:blog-502356674750161309.post-67612771077487446972008-11-30T08:01:00.000-08:002008-11-30T08:01:00.000-08:00I agree that long-term we're facing a plummeting dollar and possibly hyperinflation. However, in the short term, the dollar may continue to benefit as a falsely perceived "safe haven."<BR/><BR/>For instance, see www.moneyandmarkets.com/why-this-mouse-is-about-to-roar-28416, which persuasively suggests that the Euro is going to get hammered soon. That would be beneficial to the dollar.<BR/><BR/>Dave<BR/>http://daveeriqat.wordpress.com/Davehttp://daveeriqat.wordpress.com/noreply@blogger.com