Financial Vagabond

I don’t know what to think about today. There was nothing normal about how the markets went about their day. Up down up down waaaaay up. And exactly when the market took off gold dove. There was a perfect inverse correlation between the two markets.

When gold gets too high this isn’t good for banks and especially the fed. It is a signal of losing confidence on the dollar, which is a piece of monopoly money that we are able to use as a medium of exchange.

For the whole fiat currency to continue to function there has to be debt and liquidity. Liquidy is drying up as banks don’t want to lend to eachother. Nobody knows for sure who is the next in a series of falling dominoes. With the Fed injecting over 100billion dollars into the system last night our dollar is looking ripe for a major devaluation.

I’m off to Newport Beach today for a real estate seminar led by John Schaub. It should be interesting and I’m excited to learn something new and get my mind off the rapidly deteriorating economy.