My Dear Friends,
Have you thought about all the dramatics now taking center stage in the media? What compromise will be adopted that will allow for the US to avoid default by raising the debt ceiling?
Raising the debt ceiling is the problem and not by at means a solution. The race between dropping revenues and increasing costs will not be settled by politicians that do not even understand the problem.
The resignations of key economic personalities in the present Administration is systematic of the solid nature of the downward spiral that has gripped Western finances since the failure of OTC derivatives turned a normal recession into a long term depression.
There is no event that will turn the tide of the ramifications for poor economic management. Nothing can stop Gold, Silver, the Swiss and the Cando now.
The present drama of tax increases and spending cuts, like the release of oil, means nothing whatsoever even in the medium term.
The damage is done as the damage is cumulative. Day to day events are irrelevant. Day to day market activity is interesting but meaningless.
The die is cast. All we can hope is that gold is not headed to $12,500.