Friday, February 8, 2008
Yesterday we got the answer to whether the Yen would break up or down out of the consolidation. We also saw the Euro dropping big yesterday. The pound has been going down for some time. This is one of the things I was looking for as a signal that the rest of the world was going to capitulate and join the inflation train. Britain has been on board for some time but I think the odds are now good that the Euro zone and Japan have finally panicked and turned on the printing presses. This may be a positve for the dollar but it's also going to be a positive for commodities in general. Yesterday we saw the unusal occurence of the dollar very strong and gold also moving higher. As long as the Central banks around the world are going to flood the globe with paper then commodites are going to continue to move higher in every currency.