is the silver price set to soar?, page-27

I havn't been following this thread, but just read Silverdoctors, aimone posted and wish to comment on the start of his blog, that the US$ is about to go into freefall. How so?

The US$ is weighted thus:

Euro 57.6 %
Japan/yen 13.6 %
UK/pound 11.9 %
Canada/dollar 9.1 %
Sweden/krona 4.2 %
Switzerland/franc 3.6 %.

Switzerland has said it intends to peg it's franc to the Euro at 1.20. There we have 61.2% tied up. Draghi just this week confirmed his dovishness on the Euro. If it was to strenghten significantly, there is no doubt, he would do everything possible to bring it back to an even field. This week's response was probably to the anti competiveness of the Euro/Yen.

YEN: Abe has only been in power a couple of months and there is no doubt where he wants the Yen to be. Even though the Yen weakened faster that even Abe expected it probably is where he wishes it to be now. And he will do everything he can to keep it hereabouts.

That takes care of nearly 75% weighting. I'm sure the UK, Canada and Sweden, would behave irrationally and not do nothing if their currencies were to double IN THIS CLIMATE.

Thus IMO, The US$ will continue to trade rangebound in the foreseeable future, and POG and POS will have to do their own thing. UNLESS something out of left field happens.

Something like: Just this week Japan called in China's Ambassador, re intensifying dispute over their Shenkaku/Diaoyu Islands. Radar Lock on Japanese Warships this time. And Japan is prepared to call The US to standby their Defence of Japan Treaty. If something like this was to esculate, then perhaps China will unleash it mountain of USDebt which would cause the USBonds rates to skyrocket, weaken the US$, and make USDebt expensive. Thus weakening further the USEconomy and Power.

But, in the short to medium term, I would expect currencies to more or less maintain their Status Quo.

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