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XMFSinchiruna (26.54)

The REALLY Inconvenient Truth... :)



June 12, 2008 – Comments (9)

"The Dollar is Strong"

"The financial crisis is mostly over"

"Prices are high because of speculators"

"Inflation is low and under control"

"The markets will rebound in the 2nd half"

"Now is a great time to buy a house"

"Gold is a financial relic with no relevance today"

9 Comments – Post Your Own

#1) On June 12, 2008 at 3:33 PM, Broken196 (38.81) wrote:

hahaha! Golden

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#2) On June 12, 2008 at 4:28 PM, EnigmaDude (51.88) wrote:

I actually heard this one on Fox News just the other day:

"The war in Iraq is close to being over"

thanks for the en-light-enment.

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#3) On June 12, 2008 at 5:40 PM, colonelnelson (34.19) wrote:

Reminds me of the two greatest myths of nuclear warfare:

1.)  "Duck and Cover" will save your @ss.

2.)  The survivors are the lucky ones.

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#4) On June 12, 2008 at 7:01 PM, binv271828 (< 20) wrote:

Awesome pic! That really sums up the situation. Yeah, this short term fake dollar rally is killing my gold and silver stocks. It is killing my CAPS score and is dragging my real life portfolio down. But am I worried? NO. In fact I am glad, so that I can buy some more at better prices. :)

What will be really interesting is that after investors finally start thinking about the Feds rhetoric, and lets just say they actually raise rates and the dollar rallys some more, what will the think about: What is this "King Dollar" rally based on? .... NOTHING. Higher interest rates do not make a strong dollar. Responsible fiscal policy creates a strong dollar, rising assets create a strong dollar, a producer-based culture creates a strong dollar, a shrinking trade deficit creates a strong dollar. The US economy has none of these things.

Once that realization sets in, I believe the dollar will resume its downtrend and fall that much harder.

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#5) On June 12, 2008 at 8:21 PM, XMFSinchiruna (26.54) wrote:

That's the stuff binv!!!  I can tell already... you have the guts to be an excellent precious metals investor!!  To stand strong in your convictions when all the world is singing a different tune... to know you have seen the truth behind the lies... that is what it takes in this day and age of well-coordinated propaganda and wishy-washy investors who change their tune every time some official speaks.

Let's take a moment of silence to feel empathy for our fellow investors who have run fleeing from gold and silver during this correction... who believe that everything which has ailed the USD has suddenly been resolved.  I have tried to be a steady voice of reason to cut through the noise of the spin and the lies, and I'll be happy if even just one person is along for the ride when gold and silver take off.

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#6) On June 13, 2008 at 9:10 PM, binv271828 (< 20) wrote:

Thanks Sinchiruna!
I really owe a lot of my attitude to you. I didn't always think gold was a good investment. But reading your blogs got me thinking about gold seriously. The reason why it was your blogs that changed my mind is that you are a positive person by nature and by your writing style. A person doesn't have to be a negative, pessimistic, "the sky is falling" bear to articulate that our nation's economy is in danger. I am also an optimistic person, so I tend to gravitate toward that.

I agree that our nations economy is in so much more trouble. I agree that the Fed and this administration have led us down a very bad dark path, that will end in pain for all of us. But I too am optimistic for the future. America is too smart and too innovative to be beaten down too badly (despite how badly the politicians are mismanaging the current situation). As the reality of perpetually higher oil prices sets into the American psyche, the innovators will come out. America has the potential to be true leaders in the alternative renewable energy movement. And you can see I have picked CAPS stocks accordingly. I believe this future will come.

But I also believe that everybody should protect themselves against the impeding severe recession / depression. Even though I am optimistic for the future, I am very pessimistic on the near term state of the economy. The US is about to reap what the previous Administrations, the Fed, and the financial system have sown. The USD is not making a comeback. It should, it would be great if it did. But it won’t. It has been devalued and debased and it can only go down until the economy recovers, which it cannot do until we go through a recession. It is necessary. Man, when I hear Kudlow talk about King Dollar as if the Fed by simply talking about interest rates (and hey, perhaps even raising them) can make the dollar suddenly gain value is laughable (if it wasn’t so crushingly, despairingly sad). It shows that almost all of the pundits have absolutely no grasp on the macroeconomic situation, and how serious the situation is.

Thank you for all your blogs. I hope everybody who reads them takes your message as seriously as I do.

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#7) On June 16, 2008 at 5:20 AM, klemenv (97.71) wrote:


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#8) On June 16, 2008 at 5:31 PM, GS751 (26.91) wrote:

We will see some rallies in this markets due to the fact that short interest is at an all time high...(Historically)....

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#9) On June 19, 2008 at 11:39 PM, TheGarcipian (33.25) wrote:

Hi TMFSinch and binv,

I'm with you two, although I'm relatively new to commodities. I don't have any gold or silver stocks, but I do love copper right now. But I don't understand the retreat we're seeing now. Your thoughts here as well as your posts have got me thinking that it's only a short-term down and that share prices will pick up (hopefully so because my PCU holdings could use some loving). When viewing the overall macroeconomic picture for the US and China, it only seems reasonable to expect commodity prices to increase because of the supply-side limitations currently.


P.S. A few more quotes to add to your list:
"We in this Administration have your best interests at heart."
"Don't worry. Americans know how to save."
"This dark, despairing economic picture is for the other guy, not me."
and "We can spend our way out of this economic malaise."

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