Thoughts on Markets

Monday, October 10, 2011

"Solution" to Euro Debt Problems spur markets upward. - Just another Keynesian Delay of the Day of Reckonning - Metals & Minors Higher

 The Lord has told us what His people are to do in the Old and New Testaments. His demands upon us are very clearly summarized in Micah 6:8, “He hath shown you, O man, what is good and what the Lord requireth of thee: surely to do justly, to love mercy, and to humble thyself, to walk with thy God.” This we do in response to His love for us under the power given to us by the Holy Spirit. We learn all about these duties as we study and apply the word of God to all areas of our lives. Praise King Jesus daily. We are particularly praising Him today for the wonderful rain we have received in Central Texas. What a blessing this is after so very long.

The government reported 103,000 new jobs created while unemployment stayed at 9.1 %. I prefer John Williams' reports over at www.ShadowStats. com. To me they are much more accurate. Check them out and see for yourself. The glowing government report is still insufficient to reveal a recovering economy for us, but the traders are loving it today as most markets are up, up, and away. Remember perception is everything in markets while reality comes home to roost very seldom.

The Daily Pfennig (Pfennig@EverBank.com):

"The risk takers ran for the hills, and before you could bat an eye.  the euro and A$ had lost 1 full cent! And Gold dropped $20 like nothing.  Was it he Fitch downgrade that sent the markets tumbling?  Hmmm.  What pushed Fitch to come out with this announcement on a day when Risk On was driving the markets?   Why didn't Fitch announce this earlier in the week, when S&P made their downgrade of Italy public news?   I'll tell you why. because, just like every other time we seem to get moving with the risk assets again, a roadblock gets thrown in our path.   I call these circuit breakers.  and just like a circuit breaker at home, everything gets turned off, until the switch gets thrown back to on.  Someone controls those circuit breakers.  Can you say, the PPT? I knew you could!

And then this morning, the switch got turned back on because, yesterday,  German Chancellor, Angela Merkel, and French President Nicolas Sarkozy announced that they would deliver a plan to help banks. Remember, I told you about 10 days ago, about the whispering campaign that was beginning at that time to recapitalize European banks.  Well, it looks like the Big Dogs, (Merkel and Sarkozy) are behind this idea now, and soon. European banks will received the help they need."

MineWeb:

China holiday end and Merkel, Sarkozy accord boost gold and markets
Gold got a boost this morning as China returned after a week off and the so far un-detailed Merkel, Sarkozy agreement on what to do about the Eurozone and banking crisis. Everyone is looking to Europe to solve the economic woes of the PIIGS. Many believe that will put the whole economic fiasco to rest and restore all to sanity again. HERE

Gold rises on EU banks recapitalization pledge
Spot gold was up 1.4 percent on Monday after France and Germany put forward a plan to recapitalize euro zone banks, while traders remained cautious ahead of further details of the plan. HERE.

Gold rises on "Mercozy" announcement unlikely to reward failure
Gold prices rose slightly in early trade on Monday but are likely to continue to consolidate with a negative bias today in New York. This is of interest and should be at least scanned. HERE.


Inflation, deflation, stagflation - all will benefit the gold price
Gold is a non-national asset which becomes protection against inflation, deflation, and stagflation across the globe and it's these qualities that will force the monetary system to bring gold back into the global, monetary system. A restoration of some form of gold standard would bring more sanity to the markets for a time. However, as long as man believes his sin damaged mind is more brilliant than God's, we will live in a world of manipulated currencies under the influence of Keynesian Economics. That is a world with unequal weights and widespread fraud. For a time, it could be fund before the manipulation returns. HERE.

 Switzerland's Scoach first to allow gold currency derivative trade
As of Monday, Scoach became the first exchange in the world to allow trading in gold-denominated structured products and might also allow exchange traded funds, with gold as the trading currency. HERE.

Valuing gold in this economy, invest in resources and survive the death of money
When the currency system as we know it dies, some people will become very wealthy. In this report from the Casey Research/Sprott Inc. Summit "When the Money Dies," The Gold Report talks to Rick Rule, Louis James and Marin Katusa. One big reason for owning gold. The discussion presents differing views and is worth your while of studying it. HERE.

 Miners from Scottrade:
Currencies from KitCo:

Some Prices: DOW up 277.38 to 11381.71; S&P up 32.91 to 1188.37; NASDAQ up 77.32 to 2556.95; Gold up 26.80 to 1665.50; Silver up 0.88 to 32.15.

Best to each, Doug













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