Waiting For Signs
Although I have been expecting the dollar to rally against the Euro for some time, I was hoping for a sign of some kind to seal the deal. We now have two signs.
- When the US cut interest rates 125 basis points in 8 days and the dollar did not collapse that was the first sign.
- When owners of wine emporiums in New York are putting up “Euros Accepted” signs and are also willing to accept the currency risk by holding on to those Euros that is a second and arguably more important sign.
Click on the above links for more about “signs” as well as some possible targets for the Euro and British Pound.
In response to my post, Boris Schlossberg at FXCM pinged me with this comment:
Yes Mish. I was actually interviewed by WNBC about that today. I think we are seeing a correction in a secular bull trend and it may be a vicious one which I will happily ride down, but I still think 1.50 blow off top will happen before it’s all over. By the way, the specs in Chicago are actually long the dollar.
Just A Counter Trend Move?
For more on this topic, inquiring minds may wish to consider Schlossberg’s most recent post: Dollar Rally – Just a Counter Trend Move?
Money Is Money
“We had decided that money is money and we’ll take it and just do the exchange whenever we can with our bank,” Robert Chu, owner of East Village Wines, told Reuters television.
While some are accepting Euros, others are accepting gold and silver as payment for merchandise.
With a hat tip to “Crimson Ghost” for the link, I talked with Paul Duhy the owner of TVShowHeaven who is offering a 15% discount for payment by gold and silver coins. That discount is above posted values for the coins.
See the tables below for current values.
Duhy commented “Gold is Money, so why shouldn’t I accept it?” It’s pretty hard to refute that logic, although many keep trying. I contend Gold Is Money Because Gold Acts Like Money.
Gold has served as money for thousands of years, and government decree cannot change that simple fact.
15% Discount For Real Money
Here are the applicable tables from TV Show Heaven. If you pay by gold or silver coin, you get the following values, plus 15% off your order.
I am not into coin collectibles so I will let others debate whether or not those are fair prices or not. The key point, however, is acceptance of gold and silver as money.
Meanwhile the “deflationista bandwagon” keeps growing one member at a time. In response to Gift Card Sales Backfire Nick writes:
I want a “Deflationista” fridge magnet so that every time my wife looks in the bare fridge she decides to buy economy at the supermarket.
Mike “Mish” Shedlock
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