Technical Analysis on Gold
CIGA Eric
When a support or resistance zone, colored by numerous gaps, looks like rainbow, it often reflects an important battle for control. The battle within the cup and handle is intense.
Paper Gold ETF (GLD): 
Subtle hints, such as the fill of the 7/09 gap on shrinking volume revealed on a clean chart, suggest that gold is building cause for anothe run at the highs.
Paper Gold ETF (GLD): 
Break down of commercial bank credit reveals some disturbing trends
CIGA Eric
Points of interest:
(1) Total bank credit is contracting again.
(2) Commercial and industrial loans (business) as a percentage of total bank credit, a measure of productive investment in the US, continues to fall. It has fallen from 15.5% in 2009 to 13.5% in 2010.
(3) Real estate loans (which includes home equity loans) and real estate as a percentage of total bank credit continues to fall.
(4) Consumer credit and credit card loans continue to expand since February. Not only are consumer credit and credit card loans expanding but also increasing relative to total bank credit. Consumer and credit card loans as a percentage of total bank credit were roughly 9% and 4% in 2009, respectively. These percentages have grown to 12.7% and 7% in 2010. Consumption driven growth at the expense of investment reveals the inherent weakness of this recovery.
Break down of Commercial Bank Credit: 
Federal deficit tops $1 trillion through June
CIGA Eric
The federal deficit has topped $1 trillion with three months still to go in the budget year, showing the lasting impact of the recession on the government’s finances.
In its monthly budget report, the Treasury Department said Tuesday that through the first nine months of this budget year, the deficit totals $1 trillion. That’s down 7.6 percent from the $1.09 trillion deficit run up during the same period a year ago.
The budget deficit as a percentage of GDP has improved to 9% in June 2010. This, despite the economic recovery, is only a marginal improvement from the December 2009 low of 10.2%. Gold relentless march higher suggests that it has not missed this point.
US Federal Budget (Surplus or Deficit As A % of GDP, 12 Month Moving Average) and Gold London P.M. Fixed: 
Source: yahoo.com
Dear Lt,
When your banker cuts your credit rating the end is near!
People need to give their heads a shake if they wish to sell gold for bonds!
Best,
CIGA BT
Dear BT,
Now you don’t believe the West would ever have a bias in favor of the West, do you?
We are the stars of xenophobia.
Should we anticipate our Western credit agencies to downgrade the Yuan and Renminbi? I would say the chances are high!
Regards,
Jim
Chinese rating agency strips Western nations of AAA status
China’s leading credit rating agency has stripped America, Britain, Germany and France of their AAA ratings, accusing Anglo-Saxon competitors of ideological bias in favour of the West.
