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Monday, September 14, 2009
Executive Summary
- Gold had the highest weekly close ever
- UN calls dollar trading a "confidence game"
- US fiscal deficit breaks all records, keeps accelerating
- Brazil, Russia, India, & China (BRICs) have dollar concerns
- China promotes owning gold to its citizens
- Examining US dollar reserve currency status (again)
Normally I like to switch up my analyses each week, but last week's look at gold already needs some updating, due to a few important occurrences. There was a blistering array of developments and cross currents this past week that make me suspect we may be entering a new inning of this game.
The first of these is that gold just had its highest weekly close ever:

Your faithful information scout,
Chris Martenson
Copyright 2009, Chris Martenson. All rights reserved.




Comments
Wow, Chris! Another fantastic report. I don't know what's going on there in cm.com-land, but whatever it is, the content has been fantastic lately. I'm guessing your new staff have been making more of your time available to write, and it's really been fantastic lately...
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Thank you for the compliment Erik, although we cannot take full credit here at Martenson central. The material out there is just so incredible to work with, that it would be difficult to churn out a clunker.
To your point, we all know what should be happening with bonds, they should be falling, but they are not doing this...
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On a recent podcast elsewhere one speaker noted we don't believe what our government officials say but tend to believe what foreign officials like in China say. Of course, the real truth lies in actual actions and accurate data, and I appreciate Chris's efforts to monitor and report those...
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Chris,
Thanks for another fantastic report.
I'd be curious to hear your thoughts on silver as well at some point. It's up as well, but the deflationists are very bearish on silver even if they're bullish on gold (like Mish).
Thanks,
Chris
I love being an enrolled member! Thank you so much for your work and thanks to the CM team as well.
I think I've asked this question before my 45 yr. old brain can't remember so here it goes again.
My home mortages say 'payable in US dollars' so if/when there is a dollar callaps shouldn't we all be able to pay our mortgages in US dollars anyways? Same with car payments?
I know I can take this matter up with our attorney but I just thought I'd get your take on it as I'm sure I'll get the confused googley eyes from the attorney...
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Thanks for your analysis of the PM market and your suggestion that the dollar may have another rally (correction). This may provide a nice window of opportunity to buy more gold and silver at a decent price.
China is more nationalistic than the U...
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Thanks again for another excellent report, Chris.
Gold hitting $1,000 on its own can be dismissed by technicals and potentially irrational fears. But when put in context of the US fiscal situation and now the intense international talk, it makes $1,000 seem quite cheap...
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Are there options in a standard Fidelity IRA for diversifying out of dollars? I could pull more of my contributions out at a higher tax rate, but I'm wondering if there are investment vehicles that would meet Chris' recc to diversify out of dollars that are an alternative to taking a 40+ percent tax hit on withdrawals...
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Another angle to this story which I left out of this report (not on purpose, it came out after I'd gone to print so I'm putting it here) is what some would consider a "fundamental" reason for gold and silver to pull back.
And that reason is that the COT report (for Committment Of Traders), which reveals the position sizes of various broad classes of market participants, says that the players that almost never lose at this game (the commercials) are now heavily positioned for a pull-back...
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suesullivan wrote:
Are there options in a standard Fidelity IRA for diversifying out of dollars? I could pull more of my contributions out at a higher tax rate, but I'm wondering if there are investment vehicles that would meet Chris' recc to diversify out of dollars that are an alternative to taking a 40+ percent tax hit on withdrawals...
Enroll today to read more.