Wednesday, September 12, 2007


The dollar hit a new record low and the news flash was: Dollar Hits Record Low vs Euro on Expectations For US Rate Cut. The article goes on to tell that the debate is between a .25% rate cut and a .50% rate cut.

Gold and oil is denominated in US Dollars. When the value of the dollar declines, it is automatic that the value of gold and oil rises relative to US Dollars. The premise of the news flash is totally wrong, go the opposite direction to make BIG MONEY!

The dollar is falling because the US economy is slowing. The US economy is slowing because real short interest rates are too high. The dollar will stop falling when rates are lowered because the prospects for growth will immediately improve. Large investment flows will reverse to the US after the growth prospects have improved.

One can see that I speak the truth by noting the action at the mid cycle turn in 1995. The dollar was hitting all time record lows right before interest rates were cut. Over the next few years, the dollar climbed and climbed and climbed some more. History does not exactly repeat but it does rhyme again and again. What is about to happen is that interest rates are going to be cut, prospects for growth will be improved, stocks and profits will begin to rise and the price of oil and gold will suffer.

Of course, more than one cut may be required and indeed the futures market suggest that short rates will fall from 5.25 to 4% over the next 6 months. The profits of every little bank in the country will be enhanced by the lower cost of money. The number of businesses that will benefit from the lower rates will be all businesses that borrow money and all businesses that sell to businesses that borrow money. In other words, almost all businesses will see significant benefits from lower rates. Many of the home mortgages that are facing the threat of much higher reset rates will see much lower resets than is currently believed. The housing market will be in full recovery by next spring.

The price of gold and oil will automatically fall as the value of the dollar rises.


I am sending two or three emails to you each day because the turn is upon us. I will tell you and tell you again because big money will be made by those who "believe". Many will not bother to read the emails, many will read but take no action and a few will make a ton of money. I hope you will be one of the ones to participate in the gains. Do your friends and family a favor and send them a copy of this email. It will not cost you anything to say, "Take a look at what this guy is pounding the table about! "

Best Regards.