John Hathaway: Welfare state democracy is sure to destroy the dollar

Submitted by cpowell on Thu, 2011-05-26 00:10. Section: Daily Dispatches

8:12p ET Wednesday, May 25, 2011
Dear Friend of GATA and Gold (and Silver):
Writing at the King World News blog, Tocqueville Gold Fund manager John Hathaway studies the age of the gold bull and concludes that the bull has longer to run because welfare state democracy has pushed the U.S. dollar past the tipping point. Hathaway writes:

GATA urges Paul to probe Fed's gold swaps; he tells CNBC he will

US Dollar running into some selling

  

posted by Trader Dan at Trader Dan's Market Views - 1 hour ago

The US Dollar has been able to keep its footing above the 50 day moving average on its daily price chart which is technically bullish but it does seem to be running into plenty of willing sellers between ...

 

 

 

 

Market manipulation is the very purpose of derivatives

 

 

Euro Surges On News Chinese White Knight To Make Repeat Appearance, Attempt To Bail Out Europe For Second Time (Just As Unsuccessfully) 

Submitted by Tyler Durden on 05/25/2011 21:12 -0400

Back in January we wrote with some amusement that China would be Portugal's knight in shining armor following a "Reuters report that Portugal is in the process of making a private placement of bonds, without announcing details on size or the buyer... The WSJ has just confirmed that China was indeed the buyer, and the amount purchased was €1.1 billion." Since then Portugese bonds have tumbled and China has taken at least a good 10% loss. Five months later, it is time to kick the can once more down the road, courtesy of the Chinese yet again, who not surprisingly don't want to experience a partial wipe out on their foolish investments across their soon to be European protectorate should Greece file tomorow. The FT reports: "Asian investors including the Chinese government are expected to represent a “strong proportion” of the buyers of Portuguese bail-out bonds when the eurozone’s €440bn rescue fund begins auctioning them next month, according to senior fund officials. Klaus Regling, chief executive of the European Financial Stability Facility, told reporters on Wednesday that Beijing was “clearly interested” in the Portuguese auctions and that he expected China to participate." And whoever said that stupidity follows an arithmetic progression was wrong. It's exponential: "He argued the intense interest from Asia and other international investors showed renewed confidence in the future of the euro as a currency." Uh, no. That was the bullshit excuse in January. Now it is merely an attempt to not get destroyed in the upcoming massive pan-continental "rights offering" which will see existing "investors" take haircuts of up to 50%. But since when does Europe even pretend to tell the truth.