With all their faux ducks in a row, and I will name them, the Market Manipulators went after precious metals for the third time in as many days. Like a thief in the night, the Manipulators tried to kidnap the sister metals at the NY open. It looks as though the sisters may escape this turmoil, as they have bounced back rather nicely after the exposure. Soon the Trinity will be kept in a castle on high, where they belong. Until then there is work to be done. We must get them to the castle on the hill.
The first duck is the Euro. It may be a weak FIAT currency, but it is no worse than the dollar. It is a fallacy to compare two FIAT currencies. They are all worthless. But when monie runs out of the Euro it tends to go to the dollar. The long term trend has this move bullish for gold, as gold has risen on a strong dollar since the Euro debt crisis last April/May. When these inflections happen the gold raiders try to capitalize on perceived weakness. Any run on gold will not last, as gold is where the credit for the FIAT starts.
The dollar poked her head above water today, but I assume the paper asset will shortly drown. DXY 80 is the breaking point and any sudden downturn will make the markets look silly, as prices will be heavily distorted. China does not want the dollar, as they repeated today, and not many others are in line for the greenback. With the Fed the only buyer of US debt, how much longer will the FAIT game last?
Portugal is having bond issues and with a titan of Europe, Spain, next on the list for IMF bailout this spells the end of the Euro. China will do everything possible to keep the fabric covering the charade together so they are buying Euros. They want to continue to starve the beast that houses the US military, or what has become of it. They want America on its knees when the change of guard happens.
Europe is the more viable place to live for the next 40 years, if only slightly. Once oil is no longer the abundant resource it was, natural gas will become the global mitigater of the energy crisis. The Middle East is the worlds largest producer of natural gas and Russia is the second. Europe has a great advantage over America in that regard. Europe's infrastructure is also better equipped for an oil shock, not to mention their gas prices are as well. It has been shown that higher taxes on oil help ease the oil shock, probably due to miles driven, and the fact that Americans drive way more than Europeans.
Oil is not down today though, it seems to be picking up the slack on the war against the dollar. Gold and silver did not fair so well, which was a very interesting correlation. The markets are suddenly changing, but the game looks no different. FIAT looks to burst a hole in the side of its bubble, and natural resources are taking over support. Whatever this new landscape looks like, we are about to find out.
Today we received much political news. Gibbs will no longer mock the press. I am sure the next Press Secretary will be cut in the same mold though, as Press Secretaries must be all bark and no bite. What else would the press have?
Lastly, but not least, it looks like America will share another round with the banking cartel. A Daly has been asked by President Obama to be not Larry Summers' replacement as first thought, but Rahm Emanuel's replacement as Chief of Staff. If there is a more blatant move to show America what the true meaning of fascism is, I can not think of one. The son of the former mafioso mayor looks to hold the most important position in the White House, as Biden has obviously been demoted to the children's table, and Obama is the least cognisant president since Reagan's final years.
So Carlos Slim has his opportunity to buy silver, and so does everyone else. With the turmoil surrounding all markets, I would not be surprised if this is the last time this price range is tested. Platinum made a trench formation to bottom today at $1715, and the Trinity has rebounded nicely from today's lows. What the future holds no one knows, but it looks dim. As a torch of brightness one can hope gold will lead the way out, as it has done before. Trust in self, but remember the world has gold. There may be a reason for that.