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<p>[QUOTE=&quot;InfleXion, post: 1718117, member: 29012&quot;]The dollar index was up because of the Yen getting hammered. However the commodities selloff is much larger on a percentage basis than any gain in the dollar index which is not a reliable indicator of dollar purchasing power anyway since it&#039;s compared against other devaluing currencies. The dollar has not gained any real strength. It is continuing to be diluted and devalued by at least $85 billion each month (since we don&#039;t know what they do off the books). The velocity of money is down however since that new money is in stagnation which is why we are having deflation instead of inflation right now.&nbsp; </p><p><br /></p><p>The dollar index went from ~81 to ~85 over the last month (~5% gain) where as gold was down more like ~15% in that span. The dollar index has dropped back down to around ~83 now (~2.5% drop) and gold is up something around ~4%. I am using rough numbers but the point is that the moves in gold are no where near justified by the relationally small moves in the USD.&nbsp; </p><p><br /></p><p>The reason for the April sell off in metals was a coordinated takedown as I explained to you here:</p><p><a href="http://www.cointalk.com/t227813-5/#post1710645" class="internalLink ProxyLink" data-proxy-href="http://www.cointalk.com/t227813-5/#post1710645">http://www.cointalk.com/t227813-5/#post1710645</a>&nbsp; </p><p><br /></p><p>This really has absolutely nothing to do with the SI numbers so I&#039;m not sure why you&#039;re going out of your way to demonize the only real values that we have to look to in that regard. Feel free to provide a better source if you have one.[/QUOTE]</p><p><br /></p>

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