The Last Laugh…” the hands of the debasers are tied – so all the paper empires are coming unglued.”
By: CAPTAINHOOK
GoldSeek.com
Monday, 21 March 2016
There’s an old saying – he who laughs last – laughs loudest and longest. Applied to the financial markets, and more specifically those markets that represent man’s innovation (stocks) set against those grounded in more earthly concerns (commodities), in looking at the situation right now, it appears we are at point of ‘peak optimism’. Those in a position to truly benefit from the trend of innovation capitalization are laughing right now, with the oligarchs (tech savvy rentiers, wealthy speculators, etc.) and top-level bureaucrats cashing in ‘big time’. Unfortunately for just about everybody else however, those locked out of this game, more earthly concerns are becoming an increasing concern because of blowback pressures associated with the easy money these characters have been paying themselves, threatening to send commodity prices much higher, led by precious metals.
So although the lofty thinkers that tend to dominate the corridors of commerce these days may think they are still laughing right now, it should become apparent to these types that as time marches on, and the effects of their debasement policies continue to multiply, the future may not seem so certain, the laughs not appropriate – the true costs of malinvestment, misappropriation and fraud all too real when such policies are curbed. And curbed they must be this year, and US Presidential election year, which is considered ‘proper etiquette ’ not to show favoritism in front of the vote. That’s right – the hands of the debasers are tied – so all the paper empires are coming unglued. What’s worse, with Donald Trump an apparent ‘shoe in’ for the Presidency, and his stated goal to audit the Fed (chief debasers), perhaps now is not a bad time to consider why gold will have the last laugh in good time.
Thusly, perhaps you can better understand gold’s resilience in the face of continued suppression in US markets now, with official selling in the futures markets becoming increasingly desperate as ‘things’ continue to fall apart. Negative rates, a cashless society, and the Donald (Sanders?) are all reasons for central planners to attempt to keep the genie (gold) in the bottle using this means given they can’t make things ‘magic’ this year via more steered QE, not that this would work this time with so many people out of work now. Add to this the establishment coming unglued with either Trump or Sanders displacing the status quo, and again, it’s no wonder gold is going up with new audiences seeing the necessity to own it every day. (i.e. even the status quo will realize this eventually.)
And then you have the stock market – and it’s precarious situation – something that might become an issue as early as March again. As you will remember, in forecasting a low in stocks last month, at the time we stated with the decline from November to mid-March taking approximately 3.5 months, a one-month-plus rest in the trend should be expected, and sure enough we are now three-weeks into the recovery, looking for an important top in stocks sometime in the second half of March, perhaps a little earlier. Next week we have the Fed Meeting, which can often mark a turn point depending on how traders react to the policy. The fact an options expiry occurs the same week increases such probabilities. Of course given credit market conditions, the mania in junk, and stock market internals, not to mention Europe is imploding, who knows how long the bounce will last.
The Rest…HERE
