Looks like the US Government doesn't want commodities to continue on the upside and place additional stress on the already struggling middle and lower class, not to mention the unemployed. The US Dollar rallied today sending all commodities to the downside, with Oil and Silver leading the way.
With added margin requirements, the Silver sell-off continued presenting a potential buying opportunity for those that want to get into the market. From $48 to $34 in 4 days, nice work... George Soro's started selling his GLD and metal positions last Sunday sending the sell signal to the remaining institutions and hedge funds.... Take huge profits, create a huge pull back and set yourself up to buy at lower prices,,,,, good job George, Goldman, JP Morgan + others...
Obama knows that the likelihood of him getting re-elected in 2012 with gas at $6 a gallon is probably at 1% because no one likes to give a $100 bill to the cashier at the gas station to fill up their tank. What better way to curtail OIL prices than to get a US Dollar rally... a phony one at that. Who wants to invest in the US Dollar when the fed is debasing it with TARP and QE2? Add 2 wars to the mix as well...
The other thing that Obama needs to do is keep the financial market from crashing. If we get another 2008/2009, people will look at their 401k's and feel like crap as they just lost 50%+ AGAIN... If that happens before November 2012, Obama doesn't get re-elected...
So what's going to happen? QE2 ends in June, the markets start retracting (hopefully the high frequency trading doesn't set off a early crash), Bernanke eventually steps in and states that the economy is still 'fragile' and mentions another monetary easing program. (Just like in August 2010) This time they may call it something other than QE2.....they will think up something I'm sure.
The problem with their plan to control the Gold and Silver prices with the US Dollar is that the market is worldwide, not secluded to the US and England like in the 1970's and 80's. Worldwide demand for the metals will eventually win over the fiat currency that the Central Banks and Fed is printing up, just wait and see...
Obama knows that the likelihood of him getting re-elected in 2012 with gas at $6 a gallon is probably at 1% because no one likes to give a $100 bill to the cashier at the gas station to fill up their tank. What better way to curtail OIL prices than to get a US Dollar rally... a phony one at that. Who wants to invest in the US Dollar when the fed is debasing it with TARP and QE2? Add 2 wars to the mix as well...
The other thing that Obama needs to do is keep the financial market from crashing. If we get another 2008/2009, people will look at their 401k's and feel like crap as they just lost 50%+ AGAIN... If that happens before November 2012, Obama doesn't get re-elected...
So what's going to happen? QE2 ends in June, the markets start retracting (hopefully the high frequency trading doesn't set off a early crash), Bernanke eventually steps in and states that the economy is still 'fragile' and mentions another monetary easing program. (Just like in August 2010) This time they may call it something other than QE2.....they will think up something I'm sure.
The problem with their plan to control the Gold and Silver prices with the US Dollar is that the market is worldwide, not secluded to the US and England like in the 1970's and 80's. Worldwide demand for the metals will eventually win over the fiat currency that the Central Banks and Fed is printing up, just wait and see...
Get set for another stock market crash in 2012. Market recovered too quick and the bank stocks are already at their highest levels. My prediction is that the stock market will lose 40% of its value in 2012.
ReplyDeleteVario
A definite possibility, keep your eye on the various moving average crossovers to the downside, just like in 2008. A favorite play for downside markets is the SDS, the double inverse of the S&P 500.
ReplyDelete