http://www.gold-eagle.com/editorials...iff082208.html
Snippet:
This recent correction saw the most dramatic change in sentiment that I have ever witnessed. But the head fake that caused the market to commit was in fact not worthy of a high school benchwarmer. With absolutely no significant developments that could explain either a top in the dollar, or a bottom in commodities, investors placed their faith in price moments alone. Once the numbers started to show some retrograde motion, everyone simply assumed that a real change had taken place, and the momentum buying and selling began. The rapid movement reveals how clueless participants in these trades had become. Even those fund managers that seem to understand the fundamentals were fooled by the sharp price movements and the rhetoric they spawned.
Lacking any real change in fundamentals, such abrupt changes in sentiment following extreme price swings are as bullish a sign as I have ever seen. There is absolutely no basis for a significant dollar rally, or further weakness in gold, oil, or other commodities.
The U.S. is the focal point of the world’s financial turmoil. We convinced creditors around the globe into loaning us trillions of dollars. Now that it’s becoming increasingly apparent we cannot pay the money back, Wall Street has concocted a scenario where our shell shocked creditors respond by loaning us even more. More alarming is that many brain dead investors see this as a likely development.
End Of Copy And Paste ...
In my 5 years in this amazing business I have NEVER experienced anything like has happened in the change of perception that saw the market see a return to a stronger US Dollar.
The above article pretty well confirms my view of what happened. I honestly did not understand why it happened at the time but it is now clear.
The writer of the article said in the first line of the snippet that I included here that he NEVER saw such a DRAMATIC change in sentiment ever.
I personally have no doubts that my own analysis of the fundamentals is correct. This ensures that my future FX trading will be successful since fundamentally I will not be head faked out of my views.
As a fundamental trader this is essential to winning in FX. I hope everyone reading this will have enough of an open mind to understand this.
It is the same as going to a horse race and knowing who the loser will be. Would you bet on the losing horse. Of course not so why bet on the US Dollar ? In case anyone thinks that these remarks are against anything they believe in it is only about the cold hard uncaring facts.
You either trade FX to win money or you are in the wrong business.
Gold WILL go up. That is a 100% surety. Oil will continue to hold over $100.00 and for the time being that is almost a surety. Those Trillions of US Dollars in losses have to be absorbed by someone. That is a 100% surety.
So who takes the losses guarantees the results. If as seems to be the case now with the FED effectively backing the losses with the acceptance of Congress then the LOSER is the US Dollar.
Why ? Understand what causes monetary INFLATION and you will see that is the TRUTH. There never has been a FIAT currency since the beginning of FIAT currencies that still exists today other than the current ones. The only 100% proven store of Wealth since the start of commerce in our World has been GOLD and Silver. Why will it change now ? It surely will not.
We are ALL living in extraordinary times. 25 Years ago none of us would have known each other like this. The INTERNET will go down in History 100 years from now as the one FORCE that changed the World. The Automobile and the Airplane and The Radio and Television all have one thing in common. They move people and information around HOWEVER they all have a form of CONTROL attached to it. If you are very poor you will not drive around or fly around much. Radio informs you but also can control you with misinformation. As for Newspapers and Television we ended UP with not only 9/11 but the most INSANE war ever in my personal opinion. I understand now why it had to happen but that is much too deep and off topic for Forex Factory.
The difference with the INTERNET is that SO FAR No Government in the World has figured out how to CONTROL it so the free exchange of information between normal intelligent individuals educates those that want to be educated. It also allows those that want to stay ignorant to waste the whole day chatting on MSN or Facebook or wherever they choose.
KNOWLEDGE IS POWER only if the KNOWLEDGE learned is applied.
I trade FX for the CHALLENGE of being the BEST there is. That is my NATURE and the Money that I make or lose is just keeping score on how I am doing.
5 Years of incredible energy and time spend and FX traded and Dollars Won and Dollars lost have not been in VAIN. I have paid my DUES and I still pay them everyday that I trade.
There is NO EASY way to succeed in FX or in Life because they are just ONE and the SAME.
The ABOVE was NOT a COPY and PASTE... (SMILE)
Have A Great Saturday Evening if in North America and Good Morning in China and Japan. The Olympics are ending. September is arriving and the Closing Fireworks in China will be nothing compared to the Financial Fireworks probably starting in September right after Labor Day and the end of the Year when I turn 65 on December 31, 2008.
The MOST IMPORTANT Election that America has EVER had in my personal opinion is about to happen on the 2ND Tuesday in November 2008.
We are ALL part of History. Enjoy the Ride and Be A Winner !
G-D Bless All !
Bruce
P.S.
“Since its inception in 1913, The Federal Reserve Board has been responsible
for almost 95% devaluation of the U.S. Dollar. All this has been achieved
through its ability to continually inflate the money supply.
And, between 1985 and 2005, the Federal Reserve Board has increased the
money supply by five times. This extraordinary money creation is merely
the catalyst for debt creation. In a fiat money system, money is debt…there
is absolutely no way this money can ever be repaid except by continued
inflation. But, now that the credit bubble is blown up, inflation is no longer
an option; bankruptcy looms.”
“The Federal Reserve…What Has It Done For You Lately?”
Ian Gordon, December 29, 2007, www.axisoflogic.com
Snippet:
This recent correction saw the most dramatic change in sentiment that I have ever witnessed. But the head fake that caused the market to commit was in fact not worthy of a high school benchwarmer. With absolutely no significant developments that could explain either a top in the dollar, or a bottom in commodities, investors placed their faith in price moments alone. Once the numbers started to show some retrograde motion, everyone simply assumed that a real change had taken place, and the momentum buying and selling began. The rapid movement reveals how clueless participants in these trades had become. Even those fund managers that seem to understand the fundamentals were fooled by the sharp price movements and the rhetoric they spawned.
Lacking any real change in fundamentals, such abrupt changes in sentiment following extreme price swings are as bullish a sign as I have ever seen. There is absolutely no basis for a significant dollar rally, or further weakness in gold, oil, or other commodities.
The U.S. is the focal point of the world’s financial turmoil. We convinced creditors around the globe into loaning us trillions of dollars. Now that it’s becoming increasingly apparent we cannot pay the money back, Wall Street has concocted a scenario where our shell shocked creditors respond by loaning us even more. More alarming is that many brain dead investors see this as a likely development.
End Of Copy And Paste ...
In my 5 years in this amazing business I have NEVER experienced anything like has happened in the change of perception that saw the market see a return to a stronger US Dollar.
The above article pretty well confirms my view of what happened. I honestly did not understand why it happened at the time but it is now clear.
The writer of the article said in the first line of the snippet that I included here that he NEVER saw such a DRAMATIC change in sentiment ever.
I personally have no doubts that my own analysis of the fundamentals is correct. This ensures that my future FX trading will be successful since fundamentally I will not be head faked out of my views.
As a fundamental trader this is essential to winning in FX. I hope everyone reading this will have enough of an open mind to understand this.
It is the same as going to a horse race and knowing who the loser will be. Would you bet on the losing horse. Of course not so why bet on the US Dollar ? In case anyone thinks that these remarks are against anything they believe in it is only about the cold hard uncaring facts.
You either trade FX to win money or you are in the wrong business.
Gold WILL go up. That is a 100% surety. Oil will continue to hold over $100.00 and for the time being that is almost a surety. Those Trillions of US Dollars in losses have to be absorbed by someone. That is a 100% surety.
So who takes the losses guarantees the results. If as seems to be the case now with the FED effectively backing the losses with the acceptance of Congress then the LOSER is the US Dollar.
Why ? Understand what causes monetary INFLATION and you will see that is the TRUTH. There never has been a FIAT currency since the beginning of FIAT currencies that still exists today other than the current ones. The only 100% proven store of Wealth since the start of commerce in our World has been GOLD and Silver. Why will it change now ? It surely will not.
We are ALL living in extraordinary times. 25 Years ago none of us would have known each other like this. The INTERNET will go down in History 100 years from now as the one FORCE that changed the World. The Automobile and the Airplane and The Radio and Television all have one thing in common. They move people and information around HOWEVER they all have a form of CONTROL attached to it. If you are very poor you will not drive around or fly around much. Radio informs you but also can control you with misinformation. As for Newspapers and Television we ended UP with not only 9/11 but the most INSANE war ever in my personal opinion. I understand now why it had to happen but that is much too deep and off topic for Forex Factory.
The difference with the INTERNET is that SO FAR No Government in the World has figured out how to CONTROL it so the free exchange of information between normal intelligent individuals educates those that want to be educated. It also allows those that want to stay ignorant to waste the whole day chatting on MSN or Facebook or wherever they choose.
KNOWLEDGE IS POWER only if the KNOWLEDGE learned is applied.
I trade FX for the CHALLENGE of being the BEST there is. That is my NATURE and the Money that I make or lose is just keeping score on how I am doing.
5 Years of incredible energy and time spend and FX traded and Dollars Won and Dollars lost have not been in VAIN. I have paid my DUES and I still pay them everyday that I trade.
There is NO EASY way to succeed in FX or in Life because they are just ONE and the SAME.
The ABOVE was NOT a COPY and PASTE... (SMILE)
Have A Great Saturday Evening if in North America and Good Morning in China and Japan. The Olympics are ending. September is arriving and the Closing Fireworks in China will be nothing compared to the Financial Fireworks probably starting in September right after Labor Day and the end of the Year when I turn 65 on December 31, 2008.
The MOST IMPORTANT Election that America has EVER had in my personal opinion is about to happen on the 2ND Tuesday in November 2008.
We are ALL part of History. Enjoy the Ride and Be A Winner !
G-D Bless All !
Bruce
P.S.
“Since its inception in 1913, The Federal Reserve Board has been responsible
for almost 95% devaluation of the U.S. Dollar. All this has been achieved
through its ability to continually inflate the money supply.
And, between 1985 and 2005, the Federal Reserve Board has increased the
money supply by five times. This extraordinary money creation is merely
the catalyst for debt creation. In a fiat money system, money is debt…there
is absolutely no way this money can ever be repaid except by continued
inflation. But, now that the credit bubble is blown up, inflation is no longer
an option; bankruptcy looms.”
“The Federal Reserve…What Has It Done For You Lately?”
Ian Gordon, December 29, 2007, www.axisoflogic.com
{Promotion Removed}