U.S. Dollar Update aka Geithner Is Full Of Sh!t

The USDX appears to have resumed it's descent tonight on the heels of the G20 meeting.  In reference to my last post about the dollar, I said that from a "chart perspective" the dollar was oversold and could go through a corrective bounce that might take it back up to the 80-81 level.  At the same time, I said that if it failed to trade back up to its resistance at 80 and rolled over again that it would be very bearish.

Here are updated weakly and daily daily charts of the spot dollar price as of this evening:

(click on charts to enlarge)

The charts are pretty much self-explanatory.  I leave it to each reader to draw their own conclusions about where they think the dollar is headed next.  I will say that it has become a source of extreme comedic relief watching Geithner prostitute his stupidity every time he's on the world stage pontificating about U.S. policy support of a strong currency.

It's clear from the action in gold and silver tonight that the gold hoarding countries of the world are laughing at him along with me, as the price of these monetary metals has shown solid resilience in the face of the attempted price takedown last week by the bullion banks.  The big bullion accumulators do not really seem to care about the gold-bashing rhetoric flooding from the U.S. media.  Given the rapid decline in sentiment indicators at the end of last week, it would appear gold and silver could continue their rapid ascent up the proverbial "wall of worry."

I'm not willing to go out on a limb and proclaim that the pullback in the bullion market is over.  However, judging from the action in both the SPX and bullion futures tonight, it would appear that the U.S. financial and economic system is starting to assume "Weimar-esque" characteristics.  Avete oro?

This is an excellent article which was linked in Friday's "Midas" report at http://www.lemetropolecafe.com/.  I have never read this guy before, but it is an insightful commentary on the dynamic of the current bullion market:  FinanceAndEconomics.org