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The Dollar Is Hanging By A Thread

Bill Holter

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A very interesting week so far. The dollar is now down 150 basis points in 2 1/2 days, in the old days it used to take several months to move this much. The “96”level has only two ticks to go before we see a 95 handle. Gold was flash crashed in Sunday’s access market for about $20, this amount has not been fully recovered even with the flimsy dollar action. COMEX open interest actually rose on Monday’s drubbing which is proof positive the seller was not a “long”, conversely they were “shorts to open” …or should I say to affect a lower price. Open interest was very strong with yesterday’s tiny price rise, as I expect another very large increase from today’s session.

The point is this, it is taking more and more “shorted” contracts to contain the price. The mining shares have also been under lockdown, I am sure both legal and “naked” shorts have exploded in order to effect this feat. While the metals complex has been locked down, the dollar is taking a drubbing on world markets. The game of selling “paper metal” works as long as the dollar has respect, it is losing respect rapidly! Building the open interest will only make the delivery default that much uglier. This is not a matter of if, only when…