Today the dollar broke through 80.40. This is a major development as it signals that the current daily cycle topped in only 2 days, thus confirming that the intermediate cycle has also topped.

…..read what Toby thinks is going to happen over the next 3-4 months HERE

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….its possible. If you Print Money, everything is possible

SMN: Has the Cyprus confiscation got you worried about paper money and the banking system in general?

Marc Faber : I was just now writing about the 1970s, because I started to work in 1970. At that time, I can tell you precisely, the US Stock Market capitalization was slightly in excess of $800 billion. The total bonds market at that time was slightly below $800 billion. These are total global bonds. Over the last 40 years, we had a huge expansion of the financial sector as a percent of the real economy. There has been GDP growth and some countries opened up, like China and the former communist countries, that I concede. But still, on top of a real economy that is say 100, we’ve built financial sector liabilities of something like 1,000. In other words, the financial markets completely dwarf the real economy.
I believe in reverting to the mean. In other words, at some stage, every inflation leads to deflation in that particular sector, whether it’s housing, the NASDAQ, the NIKKEI, or whatever it is. I believe one day, paper money and financial assets will be destroyed, but I’m not saying tomorrow. Maybe it happens from a market capitalization that is much higher. Someone said to me, “The DOW Jones will go to 100,000.” Yeah, it’s possible. If you print money, everything is possible.

…..in Sprott money News Interview : Click Here to watch the full interview >>>>>>

…more from Marc Faber:

Sovereign Defaults Are Coming

The FED is scratching their heads

The FED through Money Printing, created Financial Wealth and impoverished the working class

Gold took a knockdown punch at the start of Round 1when I suggested gold could be bottoming soon. Gold proceeded to fall another 8% in the days following those comments.

But gold got up off the matt and started swinging.

Gold is now trading above the $1,290 level where it stood last time I wrote about it. From June 28 to July 23 gold rallied more than 11%. The last eight sessions have seen a consolidation that’s hovering along gold’s 50-day moving average:

Today, immediately following the mediocre July US Nonfarm Payrolls report, gold dropped along with the US dollar. Gold, however, unlike the US dollar, has recovered those losses.

Altogether, the last several days seem to suggest the bears are having trouble pushing gold much lower. In looking at the positioning in the futures market, commercials are beginning to rebuild their net short position (hedging) while speculators are beginning to rebuild their net long position. That suggests an uptrend could be in the making:

More to that point, I was forwarded these comments from a friend who receives some technical and sentiment analysis on the futures markets. Regarding gold:

GOLD: The current fund trend is down, but funds have bought $4.1b over two weeks. This is bullish because buying interest from trend-following funds powers uptrends. Another bullish factor is the extreme reading in the three trend cycles, which reveal a grossly oversold condition.