Loading ...It looks like one of those runs where gold is up-but nothing big–say…22 out of 25 days with a 1350-1400 target–then months of sell-off/ consolidation…and then–MAYBE-another slow, ragged and divergent run–so Pop no champagne corks–instead have a “Little Joe” Schlitz…and thank G*d for small favors…this is how the whole run from 250 to 1900 gold went-and it took 11 yrs…
GOT GOLD? READ THIS=
From Zero Hedge=Phoenix Capital writes=
So rather than default on the social contract made with voters, the political class will simply push to issue MORE debt to finance old debt that is coming due.
The US did precisely this in the fourth quarter of 2014, issuing over $1 trillion in new debt simply to pay back old debt that was coming due.
This is how the bond market becomes a bubble. Between 2000 and today, the global bond market has nearly TRIPLED in size. Today, it’s north of $100 trillion in size. And it’s backstopping over $555 trillion in derivatives trades.
There is literally no easy fix to any of this. The pain will be severe. And so everyone in charge of the important decisions (the political elite, the big banks, and the Central Banks) will push this as far as it can possibly go before taking the inevitable hit.
The fact that Central banks are now openly cutting interest rates to NEGATIVE should tell you how far along we are in terms of funding problems (at these rates, bond holders are PAYING the Government for the right to own bonds). From a baseball analogy we’re in the late 8th, possibly early 9th inning. When the game ends, the entire mess will collapse. And it will make 2008 look like a joke.
http://www.zerohedge.com/news/2015-01-19/beginning-end-100-trillion-bond-bubble