Everyone within the financial realm around the world will not be taking Saturday off this weekend.
Both, precious metals and the dollar did not have much activity today as traders wait for the outcome from the G20. This is a pivotal weekend for the financial world on a global scale.
The G20 ministerial meeting starts today in Gyeongju and runs through to tomorrow. In our opinion, Saturday meetings that involve big decisions are done to attempt a stealth announcement as most business and financial professionals are off during the weekend. This will not be the case this time around. Magnifying glasses are out, websites bookmarked, rss feeds subscribed to, to insure a thorough update on the outcome from world cental bank members concerning the currency war.
With Timothy Geitner stating loud and clear that the US will not devalue the dollar for the advantage of exports, it makes it obvious that he does not want to devalue the dollar period. Our export market is not large enough to be used in a comment like this, so we view it as nothing more than a smoke screen and platform to make his statment.
The two largest economies of the world are intertwined at the moment and neither one will benefit from a worthless US dollar. China holds a good portion of our debt, and you can rest assured that they do not want to do anything to cause a scenario where they would be paid pennies on the dollar for the debt that they hold.
With Geithner leading the way and supposedly the only one that has put a proposed solution on the table, a dollar rally could be in our near future. This means metals will take a hit, if true. Follow the link below for a brief description of Geithner’s letter to the G20 members below.
We will be watching closely and provide updates to any news we recieve from our international sources concerning the meeting.
The members of the G20 are listed below;
- Saudi Arabia
- South Africa
- Republic of Korea
- United Kingdom
- United States of America