Coasting while the international markets do their thing!

Both gold and silver are acting well in the international markets this evening. Of course the U.S. markets were closed for Presidents' Day. Too bad we can no longer celebrate Washington's Birthday. After all without him, there would be no United States. These United States would not likely exist and we would still be English colonies. Would that we would honor our founding fathers who gave so much to give us the freedom which we value so lightly today. If we were of the same stock, we would not tolerate the erosion of freedoms in response to the Federal Governments trampling over our Constitution.
Silver has been particularly weak this month. Thus, the Gold - Silver ratio has been increasing portending lower prices for the metals in the coming days. If prices go lower, we could get into so great buying opportunities.

From Roubini.com:

Looming Problem of Local Debt in China-- 1.6 Trillion Dollars and Rising

Did China accomplish the impossible? Did it generate almost 9% growth and maintain low debt to GDP ratio even as its exports plummeted by 20%? What about claims that the torrent of investment in China has come without too much leveraging? After spending half a year looking into the debt level of local government investment entities-- some 8000 of them-- my conclusion is no. Read it HERE.

This Chinese debt could be a big problem. Worse is the harassment of China by the U.S. Think what would happen to the dollar if China sold a large portion of our debt instruments they are holding. We had better not antagonize them too much.

From MoneyNews.com:

Faber: Buy Gold Even if Price Falls to Beat Surge

Friday, 12 Feb 2010 02:07 PM

By: Forrest Jones

Investors should buy gold even if the price continues to dip, because the precious metal is merely in a correction phase of an upward trend, says investment guru Marc Faber.

Gold could fall to as low as $950 an ounce from current levels of around $1,089 an ounce, Faber says. Read it HERE.

The Mediterranean financial problems of the PIGS (Portugal, India, Greece, and Spain may mushroom into something worse very soon. Germany is not inclined to go along with bail outs. Thus, we could see problems soon. We, here in the U.S. have several states, including California, which are in worse shape than Greece. However, these are likely to be bailout with more fake dollars by the Federal Government. Certainly, our states will be considered too big to fail.

We will look forward to our markets opening and operating once again.

We will need a good night of rest before the NY markets open tomorrow and things get hot again.

Best to each, Doug