This entire move since mid-2011 has been an odd mix of amusement and disgust, like watching children pretending to be grown-ups. All of the innocently entertaining aspects intertwined with early, disconcerting patterns of destructive behavior would be less horrifying if the subjects involved weren't so thoroughly out-of-control, and at the same time insulated beyond any measure of influence.
as the USD shoots up to $80.70
Your definition of "shoots" seems truly absurd. It's one thing when Bitcoin spikes with a relative change in one day of 10%, but another entirely when the dollar
up 0.004% by close. There's also nothing
supporting a dollar rise other than it being the "least worst" destination in the mind of the majority, while assets of real value are discarded. I'm bewildered by such an intelligent individual not
being able to see the erosion of support. Even if you hold to the thought that the dollar is "backed" by GDP - the GDP is falling apart!
Really? So a 0.004% move now qualifies as floodgates opening?
Taken in perspective, the recent move is even weaker. How much effort has it taken just to keep the 50-DMA flat
I shouldn't be surprised, considering the fact that you scream gold is collapsing when it's been steadily
declining by ~1% per day in a blatant channel of systematized control. Not to mention the blindingly obvious disparity in structure between paper
assets in general, let alone gold and silver. It's as though you think suffocation in a low-oxygen environment is impossible if you just focus on the chemistry of gas exchange.
Another thing - you recently suggested that inflation can't be implemented fast enough? Did you actually mean that? How long does it take to type:
How much longer would it take for computer algorithms to run based on protocols for swap arrangements? Seconds? Maybe minutes? Even including the human delay of communication between major banks that are first to receive funds, hours - maybe a day or two? We're talking about trusted entities, though - push a big red panic button and the financial nukes are launched. A billion dollars could zip around the world and land in bank reserves almost as fast as you could say "billion".
Now how long does it take for contracts to be unwound? How long for markets to reprice assets? Days, weeks, or in the case of what we're witnessing now, years? Can you not see the absurdity of a statement to the effect of inflation not being able to keep up with deflation?
Here's an experiment: offer ten random people $100 as a gift. The next day, tell them that you mistakenly gave too much and that you need half of it back. Extrapolate that to the banking system. Good luck getting deflation to hit faster than inflation.
It's disheartening that you still
don't get the deceptive foundation of today's currency and futures markets, preferring to dwell in superficially misleading fiat-based metrics. For all the pontification on the need to understand abusive elements, you're falling short. The only
sane move right now is acquisition of real
assets, especially gold & silver or productive land and equipment. Instead, you're trying to ski up an avalanche.
At least we can still agree on Bitcoin, but reaching the destination requires tunnelling through a mountain of granite; i.e. it won't happen soon. And with Bitcoinica down and out, nearly the entire leveraged trading environment is effectively shut down for now. Any pressure on Bitcoin's external exchange price will be predominantly from full-reserve liquidation, not forced margin calls. That's exactly how physical gold trades, irrespective of paper derivatives.
Again - I suggest that Bitcoin prices are a better proxy of physical
gold (and silver) prices than USD-denominated values.