The US$ index is down for an 8th straight day with gold rising to another record high. This is becoming an unfortunate broken record but the pace of declines have picked up as it’s down 3% over these 8 days. Bernanke yesterday said maintaining the purchasing power of the $ is a Fed goal by keeping inflation in check. Here is the report card on that using the CPI: since Bernanke took office on Feb 1, 2006, the purchasing power of the US$ is down 11%, it’s down 21% over the past 10 yrs, down 82% since the gold standard was ended in 1971 and down 91% since 1920. In Asia, the Shanghai index fell for a 5th straight day and is down 4.5% over this period as the Yuan moved to another high and expectations grow that another rate hike is coming soon. The Nikkei on the other hand rallied to the highest level since the earthquake. AAII: Bulls 37.9 v 32.2 Bears 30.7 v 31
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