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<p>[QUOTE=&quot;jolumoga, post: 1715517, member: 41780&quot;]Thanks.&nbsp; I have been studying economics and learning as much as I can since I began my interest in the silver market, and lately I have been learning the mechanics of the forex market to broaden my economic view.&nbsp; While I&#039;m no expert, I believe those who understand the fundamentals of the currency market can see things going on that others cannot see regarding silver.&nbsp; One notable phenomenon as of late is the strengthening of the dollar relative to other currencies, and this has coincided with the drop in precious metals.&nbsp; So silver can be seen as trading inversely to the dollar, and, though that inverse correlation is not perfect, it is visible.&nbsp; Likewise, <i>future expectations</i> about the dollar will influence silver.&nbsp; </p><p><br /></p><p>I pointed out in another thread that a strong currency is dangerous in today&#039;s environment, and that was met with some skepticism by some numismatists who are bullish on stocks and the economy.&nbsp; Yet virtually all major industrialized countries are cheapening their currencies to compete in the global marketplace.&nbsp; In his latest speech, Bernanke also addressed deflationary concerns with the CPI, and emphasized, in his own way, a strong dollar will be met with more easing to fight deflation. Temporarily, the monetary easing by other nations can boost the dollar given its reserve currency status.&nbsp; </p><p><br /></p><p>I was pleased that Jim Rickards also agrees with my view:</p><p><br /></p><p><a href="http://www.youtube.com/watch?feature=player_embedded&amp;v=-r0uXX4gX9Y" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.youtube.com/watch?feature=player_embedded&amp;v=-r0uXX4gX9Y" rel="nofollow">http://www.youtube.com/watch?feature=player_embedded&amp;v=-r0uXX4gX9Y</a> (skip to 12:05 to get to the interview with him)</p><p><br /></p><p>While I will acknowledge that silver has taken a beating, and that the permabulls have been <i>dead wrong, </i>and that even I have been dead wrong in my assumptions about the strength of silver as an investment, I&#039;m not convinced that the anti-silver bugs appreciate just how fragile the global economy is right now, or <i>even some of the major forces driving down the price of silver</i>.&nbsp; Hey, I could be wrong and the stock market may continue to give them more gains, but I have a feeling we are in for another crash within the next few years, if not imminently.&nbsp; Sure, there may not be the utter chaos that some people think will arise, but the stock and possibly the bond market will take a severe beating sooner than many realize.[/QUOTE]</p><p><br /></p>

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