Archive - Aug 31, 2011 - Blog entry

Put your bongs down for a moment...

This is hardly what I’d call a bullish chart. Gold actually looks to have peaked in mid-August and is now correcting. Indeed, if it doesn’t rally hard now, this pattern could see prices down to $1650 in short order.

What exactly do we have left after several decades of frenzied spending and mindless consumption? I’ll tell you what we have left. We have our rituals and dogma, and soon enough not much more.

As we learn of plans for President Obama to address a joint session of Congress next Wednesday night it is worth noting that a single picture is worth billions of borrowed dollars. But this time really really will be different.

A complicted story. I'm looking for clues to the future.

QE 3 won’t solve this mess (assuming it even arrives). Neither will the European bailout fund. We’re already in the Second Round of the Great Crisis which will see the EU broken up, the US economy implode, and a market collapse that will make 2008 look like a joke.

I am tearing up my Eurail Pass, returning my espresso machine to Costco, and sending my gelato maker to the recycling center. Next year’s summer vacation is going to be at Coney Island, not the Italian Rivera. Those damn Europeans are spoiling everything!

The US stock markets made a determined effort to put in a bottom last week, with the S&P 500 rallying 106 points off the bottom with blinding speed. But the Europeans had other ideas.

All you need to read.