Transition Point...USD, Gold, or Dow?

Commodity News Center ^ | 10/15/09 | Christopher Laird

[h20skier66]

Now that the credit/bank crisis is two years old, and the Dow around 10,000, gold is at highs over $1000. One would think that with $3 trillion of direct US Fed bailout cash, plus $17 trillion of various guarantees and singlehanded support for the US mortgage/financial markets would do something.

After the ‘Cash for Clunkers' stimulus, and all the other money thrown into the banking system since the collapse of Lehman a year ago, one would expect some kind of economic rebound.

The financial pundits are all making a big deal out of the Dow rally to 10,000. Will it stick? Or will it falter, if the economic data in the US and Western economies again sputter?

Scary data

Or try this: Sumitomo Bank just stated the USD will fall to 50 yen in 2010, due to an expected double dip recession, and lose its status as the world reserve currency. They stated that central banks cannot stay ahead of a falling USD, hence their prediction.

[h20skier66]

Think the economic recovery is a sham? It is...

[Son House]

Yep, the GDP can't lie

[BfloGuy]

Case in point, the New York Empire State manufacturing index posted at 34.6 compared to 18.9 in September. Readings above 0 indicate manufacturing is growing.

Wrong. Readings above 50 indicate growth. 34.6 vs. 18.9 merely means manufacturing is shrinking at a slower pace.