GOLD IS LOOMING AS A DOOMSDAY INVESTMENT...
ANY RUSH TO GOLD AWAY FROM THE "FUN AND GAMES" THAT THE CENTRAL BANKS ARE PUSHING EVERYDAY...WOULD BE FATAL TO THE ECONOMY...
A RUSH TO GOLD WOULD REQUIRE AN IMMEDIATE AND LARGE HIKE IN INTEREST RATES...
AND THIS COULD USHER IN THE NEXT GREAT DEPRESSION...QUICKLY.
BUT THE NOTION THAT INVESTORS WILL SIMPLY SIT BACK AND WATCH THE PRINTING PRESSES RUN...WITHOUT A RESPONSE IS ALSO UNLIKELY...
THE RUN UP IN GOLD OVER THE LAST FEW DAYS HAS BEEN A VERY VERY OMINOUS SIGN THAT TIME IS RUNNING OUT FOR THE FED AND THE CENTRAL BANKS...
SOONER OR LATER GOLD IS GOING TO BECOME A MOMO PLAY...THEN IT WILL BE OVER FOR THE CENTRAL BANKS...
IT WOULD NOT SURPRISE ME IF EVEN TOMORROW...MANY TRADERS GO LONG GOLD AND SHORT THE DOLLAR...
AND THAT WOULD BE THE ULTIMATE DOOMSDAY SCENARIO...
ON THE GOOD SIDE?
AT LEAST IT WOULD PUT THE CENTRAL BANKS OUT OF THEIR MISERY...
WHAT HAS BEEN LACKING IN THE MARKETS THIS WEEK...IS ANY SENSE OF REALITY...
OR INDEED, ANY NOTION OF MACROECONOMICS...
IT'S ONLY ONE "PLAN" AFTER ANOTHER...AFTER ANOTHER...ETC...
SOONER OR LATER SOMETHING IS GOING TO BREAK...
MY HUNCH IS THAT THE LONG SOUGHT AND OFT PREDICTED... 1000 POINT DROP IN THE DOW .... WILL HAPPEN THIS WEEK...PERHAPS ON FRIDAY.
THE OLD BULLS WANT THAT CAPITULATION SELL OFF...AND MY HUNCH IS THAT THEY ARE GOING TO GET IT... AND SOON!!
ANY MAJOR SELLOF WOULD ALSO HAVE THE BENEFIT OF STOPPING GOLD FROM STEALING THE MOMO .... AS TRADERS LOOK FOR STOCKS...TO BUY.
STILL WAITING...
