Loading ...Gold sea of red. Ominous signs esp. for UK. Tying things together is important. Hyperinflation beckons somewhere?
Something ominous seems to be in the air. People on the site have really been tying everything together in recent posts. That’s really great to read. The more we tie it together, the more we understand it. I love to understand things as well as see them in the charts.
Gold is a sea of red on Kitco today. The smallest fall is in Japanese yen gold, down 0.55% and largest is in Indian Rupees, down 1.27%. That means the Yen is weak today (Nikkei is up; that would be expected).
I’ve not seen a day for quite a while where gold in every currency quoted on Kitco has a fall of >0.5%. Maybe I haven’t been watching.
Strong dollar, possible breakout in treasury yields/interest rates, a couple of months of pound weakness after hitting its highs around $1.40/1.42 at key resistance and failing there, some relative US dollar strength in last couple of months, stock markets in holding pattern most of the year (except for tech boom on Nasdaq as per 1999/2000?).
Brexit fiasco coming soon, high inflation is UK reported today: RPI forecast to be +3.5%, junk UK CPI forecast at +2.6%, Carney and the government bean counters apparently want to scrap the RPI index (I wonder why?), despite that, commodities breakdown possibly in progress, possible oil top in place, etc.
It looks like a nasty soup of disasters is coming soon?
My bet, they want to get rid of the UK RPI index which shows what I would call real inflation because it’s going to 10% and higher. UK is in danger of currency collapse, so is Europe on the Brexit fiasco (at least that will be the excuse). A very useful excuse if/when it happens, something to blame, though decades of mismanagement, decadence and corruption is the real reason. US dollar to soar, end of dollar’s 45 year downtrend, gold and commodities bear markets to resume big time, credit crunch coming our way.
The creditors (central bankers and other banking elitists) are gonna be pulling the plug on some western countries. It’s time. Big things are gonna happen. The US embassy has moved to Jerusalem – is that merely symbolic? I think not.
For us in the UK, I think hyperinflation beckons. It’s gotta happen somewhere first. As I’ve mentioned somewhere on this site before, if hyperinflation occurs anywhere in UK, EU or Japan, dollar index can go completely wild, even to infinity, because it’s geometric on the bottom line and you can get a divide by zero.
In full deference to http://www.kitco.com, where I’m sure many people here go every day:
yes indeed, Armstrong got panic cycle for dow this week, shall see. Somebody higher up gonna flip the switch somewhere, money flow to uncle buck to park I figure
I’ve been looking at Northstar’s very nice looking US dollar charts, that seem to imply strongly that the 45 year pattern of lower highs and lower lows is not going to be broken.
Still I wonder … are we outside the realm of 45 year type events and into events that happen every 80 years or every 200 years or every 2000 years, in where we’re being steered by our hapless and hopeless financial masters of the universe?
I mean if this is like 1927-1929 that’s outside the realm of 1970-2018. Ditto if we are in 1720 South Sea/Mississippi Bubble crash territory or end of Roman Empire territory.
I just had an instinctive thought (not technical in any way): Maybe China is going to 1929 territory (or Panic of 1873), USA is soon going into South Sea Bubble/Mississippi bubble crash mode and Europe is going to end stage Roman Empire territory with mass migrations and the lot.
True story – happened near here: A man was hunting, following fresh cougar tracks in new fallen snow. He was close. A “feeling” swept over him; you know the feeling when your hair stands up on the back of your neck. He turned and found the cougar he was stalking was stalking him. (it vanished before he could draw a bead and fire)
Aware individuals, thinking individuals, those who follow geopolitics and macro economics have their spider senses tingling.
Its a premonition. There is something amiss, something big, some palpable unseen danger. You can feel it. Deflation? Currency collapse? War?
Whether this danger will vanish like the morning mist, or pounce like a tiger we do not know.
Thanks Dave. I understand your reasons for thinking the dollar can soar, but you’re missing one very important point. Debt. The US has an enormous mountain of it, and interest payments on that debt are soaring. Unfortunately, as a result, the US Dollar is debasing at an exponentially increasing rate. All currencies are in a race to the bottom, as inflation erodes their purchasing power. Commodities and precious metals are priced in this paper fantasy, so their ‘paper price’ can only go up over time.
Hope so Northstar but I was feeling depressed yesterday! Looking from the UK, things don’t appear very good for the future. I kind of agree with what you wrote there. It’s a race to the bottom but a good question is who is going to win and get there first? That’s a difficult guessing game.
We seem to have had a kind of “round robin ” of debasement, Euro, Pound, Dollar, Yen, then Euro again kind of thing all neatly controlled to look like one currency is actually “strong” when in fact they are all junk issued for debt junkie governments and people.
I think for us, wherever we are, we need to see if we can unpick whose paper will go first. I mean, I know you have $20T of debt in the US so it seems amazing that the USDX index got to 103 last year but in the end it’s just measured against other junk. One would have thought in those circumstances that gold (real money?) would have done better, so there seems to be another dynamic going on somewhere, at last right now.
The market has topped in my opinion with the 3rd week of July seasonality and a near perfect gartley pattern. It’s over. This is all normal for gold to capitulate at the same time, exacerbated by GU related things and trade wars.
https://www.tradingview.com/chart/ES1!/9vO4AVnT-Seasonal-Dump-Coming/
That’s interesting. I’m taking a look. Thanks for the comments, people!
MortdiggiddyI’m just reading your linked article and the one about Camarilla Pivots. I had never heard of those
That term sounds quite like the name of an “actress” – made me chuckle a bit.