Confluence of Forces Creating Price Explosions

As the deflationary and inflationary forces meet, we have begun to see violent convulsions both upwards and downwards in the price of both the equities markets and commodities like the teeth of a saw. In the past two days (to this point 11:10 EST) we have seen a 250 point surge in the DOW and $30+ surge in the price of gold. Both are blaring alarms that the integrity of the dollar is falling apart.

The dollar is taking it from all sides - the printing press, dumping by other nations, over leverage through derivatives.

It really doesn't matter if deflation continues because it will be swallowed up in a sea of paper and loss of confidence.

Prices may fall again in the near future but the long term trend is explosive and will end in a currency collapse. Avoid short term games in favor of long term stability when possible.