Looks like gold has come down a bit from it’s high at just over $1000 an ounce.

The stock market has been manic lately.  So what’s going on?

The Bear Sterns problem that the Fed tossed on the backs of the US Taxpayers is a much deeper problem than people realize.  The selling of gold and commodities is driven by a NEED for some investors to liquidate some holdings and take some profits.  When the big guys need to take profits quickly, it’s a sign of a deeper underlying problem.

I was surprised by the steep drop in gold, which is generally a hedge against a falling dollar and an erratic stock market.  But expect some more volatility as the market tries to recover.  I think it’s clear the US is headed for a longer, steeper recession than they’ve experienced in quite some time.

The US Dollar is falling quickly, and a lot of countries are getting very uncomfortable with commodities pegged to the US Dollar.

It’s the reserve currency of the world, and the major internet currency.  I remember when as a Canadian earning US Dollars, I was getting an extra 1/5th profit.  Now that’s totally been eroded.  (It was a nice little bonus while it lasted!)

I’m working on a report that explains the US dollar is falling so quickly, and what you can do to protect yourself against the falling dollar this weekend.  I’ll let you know when it’s complete.

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