James Turk: The edge of chaos

For all of you King World News fans out there, there’s an interesting interview just out between Eric King and James Turk:

The interview discusses the accelerating fall of the dollar and its possible waterfall decline if it breaks down through the range of 71.20-74.20 on the dollar index.

Admittedly, the dollar index only measures the dollar up against other collapsing fiat currencies; however, Turk believes that if the dollar index punches down through 71.20, its previous low, then it could mark the beginning of a free-fall decline.

[And this is despite 58% per cent of the dollar index being set against the euro, that bastion of current monetary stability, with the Greek government currently paying credit card rates on its debt and the Greek populace becoming increasingly restive.]

Turk believes that all fiat currencies are declining because there is a global:

  • Loss of confidence in paper currency
  • Lack of confidence in Bernanke that he will truly fight U.S. inflation when even he can no longer ignore it and people are attempting to eat iPads
  • Lack of confidence in politicians that they can stop themselves spending money they don’t have, except via a printing press, despite all the fine words, postures, and media-faced positions

In addition, for all of the crazy Daily-Bell-reading gold bugs out there (and you know who you are), Turk is completely unsurprised by gold’s steamrollering through $1500 dollars, and is still expecting $1850 by the end of the year as a possibility, and $1650 as a probability, as the dollar heads towards its ultimate confetti status, whereas gold just sits there, disproving Keynesian monetary socialism, on a second-by-second basis.

Here is the related KWN blog piece.