Tue Outlook : Gold – Payrolls – Banking Sector

♦ in Hot Pepper 06.09 – HP7 we warned about the support levels on the US Dollar … please review.  Today we see USD at 77.23.  A sustainable break below the levels in that HP would likely signal some serious PM rises…

♦ Gold and Silver are considerably up today

• We have repeatedly warned about Commercial Real Estate … well read on

• USD continues to weaken but certainly not yet enough warrant a full blown run into gold but that is certainly what may happen.  The semi-conundrum remains of higher gold and higher equity prices in parallel but the biggest 800 lb. gorilla in the room remains the USD and its basic fundamentals as a so-called reserve currency.

• Currencies & Commodities As hybrid cars gobble rare metals, shortage looms
• Currencies & Commodities UN wants new global currency to replace dollar
• Currencies & Commodities Gold futures hit $1,000/oz as investors seek refuge
• News English Missing Lehman Lesson of Shakeout Means Too Big Banks May Fail – Red Flag
• News English Analysts warn new Government’s policies could drive Japan into economic abyss

• Yes, the US payrolls are looking better on the “official numbers”, yet we know that the other set of real numbers not much in the press is somewhat different … but, indeed, the Federal Reserve said it was around 17% unemployed.  But the markets dont care because they see the chart below and scream “recession is over” and continue to rally.  Rally on !

• The regional banking index looks like a “robust green shoot recovery” is a fallacy, a phantasy.  This does in no way look robust or indicative of consumer lending… As I forewarned of quite a while back, governments around the world have entered a “liquidity trap” pure and simple … the entire “system” is now dependent upon Central Bank created credit and debt just to stay alive – governments have started giving away money to consumers in Cash for Clunkers, Cash for Old Appliances, and likely more tax give-aways… this is laying the foundation for worse to come

Judge Napolitano on Glenn Beck: Everything the US Government Runs is Bankrupt!

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