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Dines Letter (10/16/2009)
"Currencies are all over the world's news these days, no surprise to TDLrs. Gold continues to probe new all-time highs, as money flows out of the down-trending U.S. dollar. This cannot continue forever, as something will break. The declining dollar gives American exporters an increasing trade advantage, but for how long will offshore exporters tolerate what TDL has long predicted 'The Coming Competing Currency Devaluations'?

The traditional cure for a weakening currency is to raise interest rates, a straight bribe for investors to buy a currency in a downtrend, but that would not be helpful to America's economy. The WEE has painted America into this very corner, as predicted, and when the Fed finally does raise interest rates, bonds will decline, another reason not to buy U.S. Treasury paper. Continue to buy gold on dips, with London gold's short-term stop raised to 951, and Intermediate-term stop to 881."

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