World economy talk

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and if you look at U-6 (also known as The Real Unemployment Rate)...

it's 17.5%

http://www.bls.gov/news.release/empsit.t12.htm

U-6 Total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers

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gold breaks $1100

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gold nears $1110

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G20: stimulus

LONDON, Nov 9 (Reuters) - Global stocks rose and the dollar fell on Monday after the Group of 20 pledged to keep stimulus in place until recovery was assured, following data on Friday showing the U.S. unemployment rate rose to a 26-year high.

EUR/USD 1.5010

gold $1109.

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[ame="http://www.youtube.com/watch?v=UpgZx-9FLbE"]YouTube- CNBC - Dollar Will be Utterly Destroyed, Global Currency, New World Order[/ame]

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dow up 200 pts last night

thanks to the G20's promise that they'll keep pumping money into the financial system

Dow Ends at New Highs for Year After G20 Pledge
http://www.cnbc.com/id/33800630

Stocks rallied Monday, building off of their best weekly performance in a month, as a pledge by the G20 to keep stimulus in place spurred investors' appetite for risk.

The Dow Jones Industrial Average jumped 203.52, or 2 percent, to close at 10,226.94, a new high for 2009. The S&P 500 gained 2.2 percent and the Nasdaq advanced 2 percent.

Finance ministers and central bankers from the G20 nations agreed over the weekend to keep stimulus flowing, sending the dollar down and stocks up.

The dollar fell across the board. Oil rose $2, settling at $79.43 a barrel. Gold settled at $1,100.80 an ounce, after hitting a new record above $1,110 earlier.

[tidus1203]

Gold also touched highs last night but has somewhat retreated but still close to those highs... I guess end of the line for the short lived USD bear market rally...

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gold nears $1120


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USD index

[tidus1203]

HAI:Schiff:Well, the gold standard works. What we have now does not. Our founding fathers put us on a gold standard for a good reason, because paper currency existed around that time. It had existed in the past. And they were familiar with how miserably it had failed. So they wanted to set us on a gold standard. And we became the world's wealthiest nation while on the gold standard. We were on the gold standard for all of the 19th century, which was our fastest-growing century (more so than the 20th century). We had the Industrial Revolution; we built up our arsenals and our democracy—we won World War II on the gold standard. We were actually on the gold standard up until Richard Nixon ended it in 1971. So to say that the gold standard is somehow arcane, or that you can't have economic growth on the gold standard—that's all nonsense.
It's the politicians who don't like gold, because gold imposes discipline on politicians. It keeps them honest, and politicians don't want to be honest. They want to get elected.

Peter Schiff on the gold standard!


Love that part in bold.

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central banks around the world are buying gold

China, India are the biggest buyers of gold

gold price is an indicator of confidence in currencies

when confidence in currencies decline, gold price increases

the world is losing confidence in the USD

countries are increasing their gold holdings to replace their USD holdings

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gold passes $1,120

[tidus1203]

Gold sets a new record again last night... For me its starting to be scary I just hope we get a correction very soon ayaw ko mangyari sa gold what happened to oil last year.

[DXY]

Moderators, uls ito

i can't log in since yesterday

kahit request new password, i still can't log in using new password

am i banned? hehe

so i created new account

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Gold



USD index

[DXY]

an excerpt from Bernanke's speech last night at the Economic Club of New York:

The foreign exchange value of the dollar has moved over a wide range during the past year or so. When financial stresses were most pronounced, a flight to the deepest and most liquid capital markets resulted in a marked increase in the dollar. More recently, as financial market functioning has improved and global economic activity has stabilized, these safe haven flows have abated, and the dollar has accordingly retraced its gains. The Federal Reserve will continue to monitor these developments closely. We are attentive to the implications of changes in the value of the dollar and will continue to formulate policy to guard against risks to our dual mandate to foster both maximum employment and price stability. Our commitment to our dual objectives, together with the underlying strengths of the U.S. economy, will help ensure that the dollar is strong and a source of global financial stability.

here's is the whole speech: http://www.federalreserve.gov/newsev...e20091116a.htm

[tidus1203]

Another person that we should just ignore quite frankly... Hehehe I remember someone here (in Tsikot) got mad because I always blasted Bernanke!

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from the excerpt i posted above...

when Ben said

"Our commitment to our dual objectives, together with the underlying strengths of the U.S. economy, will help ensure that the dollar is strong and a source of global financial stability."

the dollar jumped, but then fell hard when people realized he won't be backing up those words with any action (rate hike) anytime soon

check out the intraday action last night

USD index


violent spike up, then a big plunge

here's what happened to the EUR/USD last night



when Ben made that statement, the EUR fell hard, then a big reversal

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Its just one of those PREPARED STATEMENTS anyway. Scripted na yan eh! Things like its the policy of the US to have a "A STRONG DOLLAR" or the Federal Reserve's mandate is maximum employment while containing inflation... Sounds familiar? It should be cause those are always prepared statements.

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the interesting thing was the market reaction to what Ben said

the USD rallied for like 10 minutes

hehe