Thursday, February 3, 2011

The Dollar's Defense

Interesting move this morning:  the dollar rises and so does the Trinity.  Nothing new there, but still let us analyze how.  The dollar has basically blocked oil from rising.  Oil is not a currency, no matter how valuable it is.  It will always be a commodity.  Try carrying it around to use.  Not going to happen.

So basically the dollar "allowed" the Trinity to rise, but not oil.  Now Blythe and Ben are tag teaming the Trinity.  They are out numbered and will fail, but it is interesting to see how they can block a further rise in oil.  I would say this is the smartest thing I have see from Walled Street in a long while.


  1. LH, I was watching gold & silver move up smartly today while DXY was doing the same. Was wondering, why is this happening? Thanks for your insight. We are truly returning to an age of real money.

  2. Its a risk thing. The dollar was once the risk off trade-meaning when risk was 'off', people would go to the dollar, because it is monie and liquid. The only problem is it is not monie, and therefore it is not liquid. Gold is monie, and as soon as the world realizes this, it will be more liquid than anything.