"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Sunday, March 4, 2012

US Dollar compared to Comex Gold Chart

The chart I am presenting is due to a special request from a reader that I put one together. It is an interesting method of seeing in visual form the steady decline in the value of the US Dollar against Gold. 

A careful inspection of the chart will reveal that there are certain periods during which the price of gold has moved higher while at the same time the US Dollar index was moving higher. It is during those intervals when the gold price has risen strongly when priced in terms of the various major world currencies that comprise the USDX.

The following chart is a picture of America's decline. As much as it deeply saddens me to say it, the US Dollar chart looks absymal.


  1. I am quite surprised to see this post. What I am posting below I wrote "sight unseen":

    Honesty is such a lonely word/ is hardly ever heard – song by Billy Joel
    It is difficult to explain away the silver and gold markets’ action Wednesday, other than by some sort of “intervention”. People who trade markets understand when a rising market takes out stops, as happened Tuesday, you get an acceleration of the price movement. Often prices slide back to test the breakout point – a flash crash the very next day is not at all normal! Can you imagine that in Europe politicians are proposing to tax high speed trading – I mean do they not know better than to interfere with free markets? Obviously I am using the absurd to prove my point. Sure governments are addicted to debt, but as the American pie (economy) starts to shrink, what are you going to consider to be the root cause as you look back at this present time? I think we have gone astray with excessive speculation. It used to be that a balanced portfolio was prudent, losses in one area were compensated by gains in another, and the watchword was prudence - you “managed” your risk. Today you hedge, adding risk in another area hoping maybe to gain on both trades.
    The worker merits his salary. My point here is that in the days of old, most work was manual in nature; for the Romans the pay was in salt, something relatively constant. You can no longer say that of the major currencies – I think Ron Paul does good service by constantly bringing this up. “The worker merits his salary” is a principle that comes straight out of the Bible.
    So I will keep listening to you guys, waiting for the day that someone openly admits that what we have here is a RACKET – as in racketeer, or racketeering. It is very sad to watch, a certain helplessness sets in, here we are all watching our charts and saying how unfair it is, while some worker is diligently doing his or her job, Salt of the Earth, gaining much less than I would be happy to make in a day - like the workers that made my Levis 501 Original Riveted jeans MADE IN PAKISTAN.

  2. Your first chart is quite exceptional - having gold on a semi-logarithmic scale demonstrating its exponential rise as being very constant over this period.


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