Thursday, January 26, 2012

The Camel

I was not surprised of gold's move after the Fed mandated low rates for eternity, but I wouldn't have been surprised if gold hadn't made such an impressive move either.  The game is getting long, so I expected a big move soon.  Part of my thought that there was a little room for the shorts to hit, but it may be past that now.  It may be time for the great collapse of the Fiat Ponzi.

The amount that the Fed and the ECB need to anti up is trillions more and soon.  February is important to understand where Europe is going, and March is the end date.  And no data has changed concerning housing, employment, and the like.

Yet the closer we get to the end game, the further away it seems.  When I started blogging it felt like the system would collapse soon.  It still feels that way.  Two years ago when I started I said the system had 1-3 years.  Technically I have one year left until I was too soon to predict our fate, but how is the system going to hold up?  Debt/GDP is over 100% now, and once again, no data has improved.  Sure they can continue to print, and gold can go to $7500, but somewhere along the line there will be a straw and the camel will fall. 

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