Let the feeding frenzy begin.
Do you ever look at the news coming out of the Fed and our European Union and feel like we are the proverbial calf being led to slaughter? Or worse, we are the enslaved version of the Slurm Queen?
I sort of feel that way when I see headlines like the one Mike Cane posted about in his blog post: Doom Has Entered The Farce Stage. The gist is that the central banks of Europe and the USA are going to pump an unlimited amount of dollars into the European system to save the banks from collapsing. Sound familiar? It should. We’ve kicked that can before.
The reaction today in gold is pretty evident. The free desktop widget, ExactPrice, is currently showing the spot price of gold at $1,821.60. It’s moving pretty quickly.
The trouble with those unlimited dollars, is that we are not full of unlimited quantities of Slurm. Eventually, the feast will consume us completely and the end result will be even less attractive than a worm excreting cola out of it’s rear.
Now, for some news affecting what Peter Grandich refers to as the “Mother of all Bull Markets”, gold:
China to ‘liquidate’ US Treasuries, not dollars <- Don’t believe that they are going to do this. Truth is likely more like they’ve been doing this for some time now.
India’s gold ETF holdings swell threefold in August <- More ETF’s. I’ll tell you what, I think, when this global economy implodes gold is going to be moving at warp speed.
Notes From Underground: The Use of Swap Lines …HMMMM <- good stuff.
I stole this graph from Ed Steer’s column at Casey Research. It gives me pause for a good, “Hmmmmm..”
Speaking of Casey Research: Jobs for Everyone!
Rule – Silver Default Possible, Miners Cash Flows are Parabolic <- Very interesting read on King World News.
Identities of JP Morgan Silver Manipulators Exposed <- HT to @JervisCapital this is a must read.
Turd Ferguson has the class action document here: Weekend Homework
US Home Prices Long Term <- Interesting quote:
It is fascinating to see that home prices are now lower than at any almost time since 1890, even lower than the depths of the Great Depression of the 1930s… The one brief exception being the dramatic “undershoot” of the USD’s value in 1980, following the massive stagflation of the 1970s triggered by the removal of gold backing of the USD.
GOLD RISKY? NOT AS RISKY AS DOLLARS!! <- Dead on.
Have a great weekend folks.