The biggest question on all traders' minds will be whether the bear market short squeeze that sent the S&P higher by 130 points in 6 days, is finally over - with most global market rolling over and with US equity futures unable to find their solid early morning footing, it may finally be time to cash out of the bear market rally which so many predicted, and which GSBank yesterday may have top-ticked with perfection.
The present American Gold Ownership Strategy is to EXPORT IT ALL, JUST LET US KEEP THE SCRAPS
I love the credit card commercials on TeeVee and how they talk about “cash back”, “cash bonus”, “cash this” and “cash that” – “what’s in your wallet?”
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
At its peak, the Roman Empire held up to 130 million people over a span of 1.5 million square miles. How could such a powerful empire collapse? Simple, the real effects of debasement took time to materialize... and then exploded.
Gold is many things to many people. A perennial battleground subject, gold remains arguably one of the most debated asset classes across global financial markets, but as Goldman's precious metals equity analyst notes, from a fundamental perspective, the risk/reward looks more balanced than that of its bulk and base metal peers, especially in terms of the supply/demand dynamics.
Now that you know what really affects "price", you should be able to control your emotions both on upticks and downswings.
"The safe-haven demand appears to be where people are focused on, and that is on a loss of faith in central banks being able to manage through this period..."
TIMING AN EXIT is folly.
"[Central Banks] think they are smarter than the market," exclaims billionaire investor Jim Rogers, "they are not!... the inevitable consequence of disastrous easy-money policy from central planners is war..."
When there is no more gold left in London to export the gold price is likely to go higher on strong global demand induced by economic headwind.
European Banks holding European sovereign debt may have to take haircuts and be part of bail in plans should that same debt default, according to a plan being pursued by German government advisers. In another attempt to shelter German tax payers from the largess and excess of fellow European neighbouring countries' national banks, the move could trigger a run on billions of euro of sovereign debt of said banks. In an article penned by the Telegraph's Ambrose-Evans Pritchard, one of the council's dissenting members describes the plan as the "fastest way to break up the Eurozone".
One day after markets saw a violent return of optimism, which sent stocks around the globe and US equity futures soaring (the US was closed for President's Day) driven by terrible Japanese and Chinese economic data which in turn hinted at more central bank easing, animal spirits have cooled off despite some truly unprecedented Chinese credit numbers.
As the One Bank strips humanity bare of all its wealth, these Owners make it harder and harder for themselves to continue to hide.
"Truth is like poetry. And most people f**king hate poetry." - From the Big Short movie (overheard at a Washington D.C. bar)