A look at the FOREX casino...

You know my thoughts here. Just as you have probably gotten a bitter taste from this blog every time the global 'inflation trade' casino was mentioned over the last couple years, you might have also had a thought like 'what the hell does he have against FOREX?'... Throw in the supposed financial adviser herd, Wall Street's legal criminals and the overwhelming majorities of the world's industrialized populations, who sat on their unquestioning and uncritical ass[ets] until it was too late, and you get an idea of some of the things I have no respect for.

FOREX makes and loses trading jocks a lot of money. It affects whole societies and their standing in the world. But the fact that FOREX is still intact and taken very seriously probably means that we are still years away from any real blow off in gold and that the financial world is many years away from any sort of rational capitulation to the idea that the system of inflate-deflate-inflate-deflation-inflate..., with its ever increasing moral hazards, is near an end. In short, the game goes on because the majority are still living in the old world; what has been.

Here are some weekly currency charts for consideration. The lower panel shows their potential to correct upward vs. gold while the main chart shows just how far they have fallen vs. USD. There is plenty of room for upward correction against the dollar, but if/when the idea is peddled once again that these things are any kind of safe haven from the dollar, it will be time for Uncle Buck's correction to end. Uncle Buck stinks to high heaven, but he plays in a very bad neighborhood.