By Jack Crooks, Editor
www.worldcurrencywatch.com

Gold did the deed. The precious metal closed over the US$1,000 mark on Friday as the Senate Banking Committee Chairman Chris Dodd sideswiped the dollar.

Mr. Dodd, a man who pontificates on any and every subject under the sun and never lets real knowledge of a particular subject area stand between him and the nearest microphone decided to try out the N word — nationalization! Traders viciously dumped the dollar on Dodd’s “deliberation.” 

By Sean Hyman, Currency Analyst
www.worldcurrencywatch.com 

Even some of the biggest industry players in Wall Street overlook a few simple truths that make currency trading infinitely superior to stock trading. For example…

By Chuck Butler, editor
www.worldcurrencywatch.com

I have to apologize right here, right now, that I contradicted something I said and my friend John Mauldin said yesterday. (I didn’t mean to and it shows what happens when you write pre-5 a.m.)

I thought that the U.S. losses were larger than those in Europe (overall, both East and West)... But upon further review, I see that is NOT the case…

By Chuck Butler, Editor
www.worldcurrencywatch.com

It looks like the euro is destined to suffer for the time being.

This time, you can blame the euro’s suffering on the rot on the vine in the Eastern European countries. These Eastern European countries are taking on water from bad loans, or loans gone bad. And of course, you know who the lender of last resort is on these loans don't you? Yes, Eurozone banks. This opens a whole new can of worms folks...

By Chuck Butler, editor
Currency Capitalist
www.worldcurrencywatch.com

(HINT: The Kind You Can Save $600 An Ounce On, Duh!)

Yesterday, Tim Geithner stumbled out before the press and managed to say everything - and nothing - at the same time.

Let’s start with the obvious - “The recession is putting great pressure on banks.”

Really, Tim? We had no idea.

By saying nothing of substance, Geithner confirmed Wall Street’s worst fears: that Washington doesn’t understand the fix we’re in. (And even if they did - could they do a darn thing about it?)

Very few people alive can remember the great “gold grab” of 1933.

That’s when President Franklin Roosevelt declared gold ownership to be illegal. Once he forced enough Americans to turn over their gold - in exchange for paper money - he revalued the price of the yellow metal from US$20.67 to US$35 an ounce.

What a rip-off!

That meant everyone was left - in the heart of the Depression, mind you - holding dollars that were worth a fraction of their former value.

By Sean Hyman, Currency Analyst
www.worldcurrencywatch.com 

Good question, right? Especially right now as unemployment rises all over the world…

At last glance, Canada has 6.6% unemployment, the U.S. has 7.2% unemployment, the U.K. has 6.1% unemployment, and Japan has 4.1% unemployment.

Only Switzerland has managed to keep unemployment relatively low at 2.8%. (Anyone up for moving to Switzerland? Great skiing and employment – sounds good to me.)

By Sean Hyman, Currency Analyst
www.worldcurrencywatch.com   

Common sense says a strong currency should help a country right? Well, not always.

It actually depends on whether you import or export most of your goods. If your country is a net exporter of goods, then a strong currency could help your economy. But if your country is a net importer of goods, then a strong currency could wreak havoc on your economy.