It’s only Thursday and the Treasury has gone to the credit markets for $194 Billion so far this week for short term paper alone. Let’s say they only borrow another $6 Billion tomorrow and end up at 200 Billion. Let’s do the math. 200 Billion times 52 weeks is ……….$10 Trillion 400 Billion Dollars. This coincidentally equals the amount of the current national debt. The current rate of borrowing is obviously unsustainable and most certainly will be curtailed on the supply side. We are in the end game where paper contracts and naked shorts are being levied to crush prices and thus scare those with half a brain out of their metals positions. Please do not be fooled. This is outright panic by the US government trying to save an unsavable system. In the process they have debauched our currency beyond imagination. I wrote yesterday that Argentina was the road map. I was wrong. Argentina was never given this much rope to hang themselves with. The Dollar will be more akin to the Weimar republic or Zimbabwe within a year or so. The music plays on and CNBC just keeps cheerleading the Generals as they lead us off a cliff.
The Failout
Videos

Expect $2,500 – $3,000 Gold In Next 12 Months

The 5 Major Trends That Are Shaping Our Economic Future

Patrick Karim on gold, inflation and the next break out
Blog posts
When The Weight of Inflation Becomes Too Much
In a comment to MarketWatch last week we said that traders this week would be most focused on the CPI report that came out yesterday. In that very report, Inflation came in hot, above expectations, and posted its biggest monthly increase in August this year. It’s up 3.7% from a year ago. However, markets didn’t […]
Expect $2,500 – $3,000 Gold In Next 12 Months
It’s that time of the month again when we bring in a top chart analyst to take us through what they’re seeing in the markets, right now. This month we have the brilliant Gareth Soloway. Gareth explains why he’s watching the US Dollar, what he means by “Good news is bad news” and when we […]
Should We Worry About The Strong US Dollar?
Over the August period, it’s easy for people to switch off and to some extent, it might feel like the precious metals have been doing the very same! However, if you look at the YTD performance of gold across key currencies in the World Gold Council table provided below then you will take some heart […]
Featured

Gold Helps Me Sleep at Night

The King and Queen will be Gold and Silver

Jim Rogers Interview