Aug 16, 2008

P.J.Cooper: Hold on to gold for systemic protection

"Massive currency intervention ahead of the US presidential election explains the dollar rally that has depressed precious metal prices over the past two weeks.

But all the intervention in the world can not compensate for a monetary system that is fundamentally flawed with huge counterparty risk in derivative products and diving into a recession. Consider the logic of the dollar rally, there is none really.

We hear that the EU was in negative GDP territory in Q2 and Q3 is looking worse, so the EU might beat the US into declaring a technical recession. The dollar rises, US exports become more expensive for sale into a declining EU market."...

Please click HERE for P.J.Cooper's post

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