Monday, January 27, 2014

World Market Indicators

Globe Backyard World Markets

 OK Davos was fun, wasn't it?  Yea, back to reality, we had heard over a week ago from Goldman Sachs that a correction is coming in the neighborhood of 10% now for the Dow that would be 1600 points and last week we've seen 500 points hit the dirt.  Looking at the markets tonight and China opened 500 points lower and Japan near 400 down.  Right now 01:24 CST China is at 22,006 down 445 and Japan is down 386 at 15,006.  The Fed mentioned again it will ease printing but it's all not real anyway.  London market will open next and it to will be down along with the Dow.  If the Dow ekes out a gain today you've got funky money any which way. 

Something to think about here and that is China is buying up tons of gold some analyst say near 10,000 tons.  Seems that China is going back to old school where their currency will be backed by gold.  Now here in the states, the Feds keep gold for other countries and the States alone have 8,133 tons but some time ago Germany's Bundesbank wants 50% of its total gold reserves back in Frankfurt including 300 tons from the Federal Reserve. The Fed stated it would take 7 years to complete the transfer.   Is it that the US government is no longer a trustworthy banker for foreign nations and Central Banks?  The Fed refused to submit to an audit of its holdings on Germany’s behalf, also the Fed refused an audit to the bailout of the financial fallout.  If you don't allow your books to be audited, well then your Betty Crocker, this could lead to a run on the Fed, now that would be a first. Why even have your gold held by The Fed? The gold held with the New York Fed can in a crisis be pledged with the Federal Reserve Bank as collateral against US dollar-denominated liquidity, the importance of the dollar as the world’s reserve currency.  Germany has popped the question maybe the $dollar$ not so important anymore.

This is a bad day for The Fed and central banks around the world as to where is the gold?  Back to China, now the whole world knows China owns 1.2 trillion in U.S. debt and understanding they have been selling the bonds. Also, Japan owns 1.1 trillion and Russia's 154 billion.  What else does China want?  Gold, seems that since The Fed is in the pocket of America and likes to use the U.S. military as a bully, is that who is getting all the gold, China?  Funny how money can make friends and then enemies.  No matter how you slice this The U.S. and The Fed are in a corner, print more money and buy gold?  No that would sink the dollar and raise the price of gold, slow the printing to its 18 brokers?  Yea but that's going to raise rates and slow the Dow because the average consumer is broke he or she is not investing.  Goldman Sachs said a correction is coming, yea as soon as The Fed slows the printing, bye, bye $George$ and where's the gold?  The United States government along with The Fed are creating an uncomfortable zone for itself, in the game of Monopoly.  For when you cheat, the other players will start to work against you to remove you from the game board.  US Debt Figures calculated in the US$ billions.

The markets are a fraud, pumping funny money into the system, because face it if you can't get audited who's to say where you're putting the money?  The Dow is a Zeppelin and what happen to the Hilgenberg.  Unless you can ride the bubbles before it pops or really when the plug is pulled, short-term market play will not make stable growth, too much uncertainty.  Long term makes for higher yields and dividends along with growth.  Watch hard assets a true indicator of inflation which is the commodities, gold, silver, grains, beef, oil and speaking of energy the price of propane is up because 300 million gallons of propane was used to dry crop harvests in the Midwest last year, far above the 65 million gallons used in 2012 and the cold snap hasn't help either, that damn torpedo of a tank (@ 1000 gal) is like a bank account when prices near $5 per gallon.

World Market Index



Funky Money 

Funky Fed

The United States government and The Fed have gone funky, can you fell their grove? 



Where's The Gold? 

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the print, taper, print, taper talk that has led to the economic and financial chaos that finds the Financial Times opining that one should do like the Bundesbank did and demand physical delivery of your gold before your wealth becomes pixellated. In the second half, Max interviews John Mauldin, author of CODE RED: How to Protect Your Savings From the Coming Crisis, about money printing, inflation/deflation, gold prices and wages. 



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