On the Strengthening Price of Both Silver and Gold: What it Means

    Both chart formations of silver and gold are rather strong, and the price action is even stronger with volume starting to add to the market.   This is in contrast to the stock indexes, which, while moving higher are performing their levatating act on a complete dearth of volume.   The houses of Goldman and Morgan profess to be covering their longs and handing higher prices to the public, but when they open their mouths it is generally assured, like former President Bill Clinton, that they are lying through their teeth.   Especially when you consider that the public has pretty much abandoned the markets to the pick-pocketing HFT's and Hedge Funds, which have fundementally destroyed the equity markets.
   Some contend that the pro's are "front-running" the market ahead of the Federal Reserves announcement of Quantitative Easing III (or is it IV?), which Ben Baranke indicated he would do in order to force Congress to reduce its deficit spending that he has to finance for them.  
  On the other hand, bi-lateral (morphing into multi-lateral) currency exchange agreements that have sprung up between China, Russia, Iran, India, and Japan due largely to disasterous American foreign policy and fiscal ways, portend the total abandonment of the dollar as the worlds reserve currency.   How long will it be before Brazil, Indonesia, Austria, Hungary, and parts of the Middle East, Africa, and the rest of the world join in to side-step the dollar and its side-kick, the euro?
   Abandoning the dollar makes a great deal of sense for these countries and the world at large, because it means lower prices without the dollar gouging their pocket books anymore.   And when this mentality starts to take shape, what is the tipping point where the markets react to this new monetary reality?
   I haven't got a crystal ball, but I do have a gold chart that is running down a technical funnel whose decision time expires in 2 or 3 weeks, and rarely does a chart run this far down its funnel before it makes a decision.     
  So it is highly likely that decision time is here.   And that is what the charts are telling me.  It's decision time.
  That explains much more accurately the price action we are seeing in the metals.  And if this is the case, it will start to over-flow into other commodities depending upon their supply and demand.   It also makes a case for buying equities whose price in dollars as the dollar falls out of bed, becomes a haven to ensure value.
  The long term trouble comes in the decline in world trade due to what would eventually become a bartering system of exchange, dragged lower by governments trying to drive down the value of their currencies in order to attain an edge in their exchange rate.   And while it may be easy to accuse me of looking at the darkest side of the situation, this perspective is more in fitting with the historic reality of the situation.
  Let me make a logical case for making it worse.   American foreign policy.   By and large, it has created the problem, and it would be in keeping with history that such a policy would exercise its military might in order to alleviate the problem.   In fact, this would be in keeping with the archaic disasterous Wolfowitz Doctrine covertly penned by Doctor Evil Dick Cheney, that has been the guiding force of the neo-con foreign policy that has been running America into the ground since the start of the GW Bush administration right through to today's Barake Obama crash and burn.
  It's not that our world is about to change.   It's that the perceptions of the world are about to catch-up with its reality, because our world has already changed.