Today leaves me scratching my head. Course, that ain't no big trick, since I'm only a natural born fool.

Twist your brain around this. US Dollar index rose today, 30.6 basis points (0.39%) to 82.603, a right pert move. Makes you think demand for dollars rose, right? But the yield on 10 year treasuries gapped UP today, meaning the 10 year treasury price FELL. But what is a 10 year treasury made of save dollars? Nothing, not even any vanilla, so dollar demand fell?

Why mess with this? All that "flight into dollar" talk has some little credibility as long as that yield keeps falling and T-note rising, but the yield has now twice (2x) gapped up in the last three days. What I want to know is, what happens when the "flight OUT OF the dollar" starts? And it will look something like this, with yields rising fast. By the way, it appears that yield has bottomed & reversed.

The Draghi gas has been let out of the euro's bag. Euro dropped again today, down 0.46% to $1.2305. Tomorrow will probably drop below the 20 day moving average, which it touched today at $1.2264 Sorry, sorry.

Yen stumbled 0.17% to 127.27 cents (Y78.57). Rolling over earthward.

STOCKS were a mite bewildered today. Dow fell 10.45 to 13,165.19 while along with other indices the S&P 500 rose 0.58 to 1,402.80. Highest the S&P500 can reach is about 1,420, Dow about 13,300. Then the torture will begin.

I always thought there must be something in the world dumber than a US presidential race. I was wrong. The Republican, What's-His-Name, lambasts welfare cheats & accuses Obama & the Democrats of abetting them. Look at the numbers: this is an emotional red herring, as you can roll up all the welfare in a ball & throw in social security & it amounts to less than peanuts in the Federal Budget. Big money goes to war spending & medical care, & they won't touch war spending any closer than Superman will touch kryptonite.

GOLD rose $4.20 to $1,617.10, but as nice as this is, it doesn't really prove anything. Just leaves gold trying to bust through $1,625 still. It's pushing, for sure, but must break through to change anything.

SILVER rose -- get out your microscope -- two cents to 2809.7c. Chart resembles gold, but knocking at a ceiling of 2820c. 2860c is the next big barrier.

Yet this is progress. Silver & gold are holding on & slugging out gains cent by cent. Higher prices to come in the fall.

I saw a Reuters report today that was got everything completely so wrong that it wasn't worth the trouble to unravel. It said we are getting close to game over for gold. What makes all these otherwise intelligent people such goofs when the topic turns to gold or silver? They have no clue what drives them. None. Not a bit, and even when they cite an excrescence of the driver -- in this case, the Fed's inflationary QE1 & QE2 -- they can't fit that into the bigger picture. Dopey as it sounds, they believe the Fed's propaganda that these inflationary waves help the economy or are limited to these two incidents. In other words, they don't grasp that the Fed's job is to INFLATE, & it can do no other, and that the entire jury-rigged financial & monetary & government spending system must inflate or die, and that inflation alone drives silver & gold.

TRANSFORMATIONS: Last Christmas Eve Catherine Austin Fitts of Solari.com, Susan, & I were chatting late in front of a fire. Catherine and I were both lamenting how many of our clients & customers feel isolated. They are competent, imaginative entrepreneurs whose word is their bond & handshake better than gold. But they feel alone and trapped in an uphill world where regulation & unreliable people are stacked against them, an insane world flying apart. They are excellent people caught in a rapidly decomposing world. Where are the other sane people? Have they all vanished?

These are not the people who are satisfied merely to concentrate on what's going wrong and forward you fifty emails a day to prove "See, I told you so." No, these are the folks who want to work with other intelligent people to DO something about it.

Catherine & I decided to put together a gathering. We call it "Transformations & Renewal," and set the date for 12-14 October 2012, right here in Middle Tennessee.

"Transformations" is not for everybody. It's for hardworking, industrious people who take time to care for others, for their families, communities,& colleagues. It's for those responsible, successful people who see a world out of balance, but instead of giving in and giving up have chosen to try to understand what is happening, and take positive action -- to build the future and the economy they want, instead of waiting for the world to collapse. It's for people who look at a dying world through faith, and see not despair but an opportunity to build a better world.

Our gathering is at Christ Our Hope Church. It isn't required that you practice our faith to attend, but we will talking in the context of Christian faith, so you need to be comfortable with that.

"Transformations" is not a series of lectures. There will be speakers, but you will also participate in four pivotal discussions designed to let you share answers you have discovered with others, and learn their answers. We are only guides, not guidebooks.

"Transformations" is not for everybody. Registration is limited to 50 people. We want you to leave transformed and renewed, with new networks of people who can assure you that we are not alone: we are many. You can visit our website, and sign up, at http://transformationsgathering.com/schedule/discussion/

Argentum et aurum comparanda sunt —
Silver and gold must be bought.

— Franklin Sanders, The Moneychanger

Copyright Notice

© 2015 Little Mountain Corporation, d.b.a. The Moneychanger. All rights reserved. May not be republished in any form, including electronically, without our express permission.

Warnings and Disclaimers

To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary trend is up, targeting 16:1 gold/silver ratio or $195.66; stock's primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 16 ounces of silver. US$ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

Be advised and warned:

• Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short-term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.
• NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.
• NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.
• NOR do I recommend buying gold and silver on margin or with debt.
• What DO I recommend? Physical gold and silver coins and bars in your own hands. For additional information, please see our Ten Commandments for Buying Gold and Silver.
• One final warning: NEVER insert a 747 Jumbo Jet up your nose.

Explanation of Terms

The US DOLLAR INDEX is the average exchange rate for the US dollar against the Euro, Yen, Pound sterling, Canadian Dollar, Swiss Franc, and Swedish Krona, weighted for each country's trade with the US. It gives a general measure of the US dollar's performance against all other currencies.

The DOW IN GOLD DOLLARS measures the Dow Jones Industrial Average in gold dollars (0.048375 troy oz. by law). The DiG$ depicts the Primary (20 year) Trend of stocks against gold. When the DiG$ is dropping, gold is gaining value against stocks in a trend that should last 15-20 years. The DiG$'s chart is identical to the Dow in ounces of gold, but gives us one unvarying measure all the way back to 1896. Because it shows the primary trend ("tide") of gold against stocks, for investors it is the single most important financial chart in the world today. Since its August 1999 high at G$925.42 (44.8 ounces), the DiG$ has trended down, targeting a G$80-G$20 (4-1 oz. of gold will buy the whole Dow).

The DOW IN SILVER OUNCES shows how many ounces of silver are needed to buy the entire Dow. The DiSoz is trending down with a target of under 36 ounces.

The GOLD/SILVER RATIO is the gold price divided by the silver price, and shows how many ounces of silver it takes to buy one ounce of gold. The Ratio shows us the Primary (20 year) Trend of gold's value against silver. When the Ratio's trend is dropping, silver is gaining value against gold. This trend targets a gold/silver ratio of 16 ounces of silver to one of gold within the next 5-10 years. That implies that silver will massively, vastly outperform gold before this bull market ends. When both metals are rallying, the ratio often (but not always) drops, confirming the rally.

Other Important Information

This is not an offer to buy or sell. Prices subject to change without notice. To enter an order, call us at (888) 218-9226 or (931) 766-6066. Sorry, no sales to Tennessee.

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