VIDEO: Update on Ukraine & The Strengthening Dollar

Adam Taggart
By Adam Taggart on Fri, Sep 19, 2014 - 9:20am

Here's Chris' most recent weekly update video, in which he shines light on the continuing important story developing in Ukraine, despite the mass media's radio silence on the matter.

He also addresses the recent report by Charles Hugh Smith which makes the argument that, despite its many long-term flaws, the US dollar may strengthen further vs other fiat currencies by 50-100% over the next several years:

If you'd like to be notified when a new video is posted each week, subscribe to our YouTube channel.

Note: If you're reading this and are not yet a member of Peak Prosperity's Economy Wonks Group, please consider joining it now. It's where our active community of economic enthusiasts share news and engage in debate regarding all things economic. Simply go here and click the "Join Today" button.

,

5 Comments

rubearish10's picture
rubearish10
Status: Member (Offline)
Joined: Jan 24 2010
Posts: 24
PM Equasion

Terrific article explaining the US Dollar features and benefits as a reserve currency. It truly helped me further understand it's relationship in our global economy and financial markets.

My question is about Gold. Since gold should be part of  investor's core portfolio  the idea of shorting Yen, Euro and other weaker currencies  seems like an obvious consideration as the commodity continues to leak lower and threaten it's recent $1180 major line of support. If Charles' view of an extended USD rally of up to 100% in the near future, is it worth even using the hedge strategy or perhaps  just sell the gold (and other PM's) with the intention of buying it back much later down the road since US rates will remain low forever and global economies will remain sluggish for a likely indefinite period?

Is see risks of selling of course, such as a geopolitical event that cannot be contained, a surprise in US budget balance, employment, manufacturing, housing, a delay in ending QE (at next month's FOMC meeting), a sharp rise in US interest rates backed by a overheating US Dollar rally crushing US exporting multinationals. I could go on but did I answer my own question?

Gold continues to be the most hated asset, yet we continue to hear the West to East exchange of physical and paper selling. In other words, there may be a reasonable chance Gold can go higher with a rising US Dollar. I believe it's happened before.

Great Job Charles and Chris,

Rubearish10

 

 

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1627
Help Obama start WWIII

Mark_BC's picture
Mark_BC
Status: Gold Member (Offline)
Joined: Apr 30 2010
Posts: 492
I agree in principle with the
I agree in principle with the thesis of a rising dollar against other fiat currencies. The only major problem / caveat with that line of thinking is that it assumes that the global system of fiat money remains intact. We have all been warned about the prophesized failure-to-deliver event in gold where it just runs out and we then move into the chaos marking the beginning of the post- side of global Peak Oil.
 
Koos Jansen's and other's research reveals about a 2000 tonne annual shortfall between mining supply and consumption, which mostly goes to private individuals in China and India. In addition to this add smuggling into India, and I'm sure quite a bit of secretive Chinese imports for the PBOC.
 
That gold has to come from somewhere and the question we've all been wondering is when does it run out. The thing is, if a 2000 tonne shortfall is due to private sales then that cannot be turned off, whereas central banks could just stop buying gold if it ran out and they were not yet ready to crash the system. So if we are close to running out then there will be nothing China or the US can do to stop that inevitable failure to deliver, regardless of whether they are ready to transition to a new currency system or not.
 
The recent bumping up of the Shanghai Gold Exchange's opening date is very intriguing. I can see three possibilities for why they would do this:
 
1) They got everything together ahead of schedule and decided to open sooner. I find this explanation not too believable,
 
2) They know that a physical default in gold or silver is near or imminent and they need to get things sorted out before that happens,
 
3) They see the war mongering and both China and Russia want to hamstring the US before any major military action is taken, so they will take the gold market physical.
 
Are there any other possible reasons people are aware of? If (2) or (3) is true then the default is near and there will be no way to hold the gold price back afterwards. Since gold is the anti-dollar, this will destroy the global fiat system very quickly and the dollar will die, because there is one currency that can compete with the dollar: gold. If we are near the end then I could certainly see them taking gold sub-$1000, since they won't care about the faltering physical mining supply for that short amount of time. That would be the strongest warning IMO.
agitating prop's picture
agitating prop
Status: Platinum Member (Offline)
Joined: May 28 2009
Posts: 863
Brilliant

Thanks Chris,

I love that you are taking the bull by the horns in a big way, when it comes to slamming the military- industrial- news and entertainment complex. Bravo! 

The supporters of the democratically elected Ukraine, returned to fight the supporters of the illegal coup were labeled 'rebels' by the Western press. Unfreakingbelievable. I love it. I blew a total psycho when a friend started in about the insidious stealthy Putin, a few weeks ago. Hey, nothing a little Paul Craig Roberts can't fix. He's singing a different tune now. 

In a world of rebranding and reinvention,  Madonna can ditch her conical bra, become a Marilyn Monroe look alike, then a few years later become a faux earth mother  and take up the Kaballa-- and people fall for it. To be fair to the cringe-worthy chameleon, she had enough class to orchestrate veneer change over the course of a couple of decades.  

But the nipped and tucked peace-nik turned war monger, hero to Nero, John Kerry, should stick to rebranding himself, maybe get himself a proper trophy wife, and leave the Ukraine alone. The democratically elected leader and his supporters seemed to like their original Western brand. 'Corrupt but tolerable.'

 

pgp's picture
pgp
Status: Silver Member (Offline)
Joined: Mar 2 2014
Posts: 211
Enlightenment

Well done CM for exposing suspicion about Ukraine.   I think you are completely right.  I don't remember Iraq, Afganistan being sold in quite as ridiculous a fashion but I may not have been paying so much attention at the time (which is a symptom of the problem).

From my enlightened point of view, the whole Ukraine v Russia debacle has played out like some kind of black comedy.  Still I find it amazing that 99% of the population of the world just assume their TV stations and democratically elected governments are selling them truth and wisdom.

I have a feeling we live in an age of educated ignorance.  Where the over-population is trained to become zombies on auto-pilot being fed course corrections by TV and facebook.

 

 

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments