What the heck is happening to markets all over the world?
The answer to this is … there are no markets. There are no legitimate markets from bonds to Gold.
Computers are trading with computers and that is all there is. These computer run markets are virtual markets and that is all there is. The computer run markets create prices which are so virtual that there its no depth to any market anywhere on anything. Volatility goes wild as computers overtake markets. Central banks, lacking no practical tools, are pushing the panic button.
Today, the Japanese bond market clearly over ran their control protocols and breached established parameters. A strong close at 3% or higher on United States ten year bonds could cause a leap in rates due to the fact that there are few real position takers. This is the result of central banks creating artificial market rates which are so low they are an insult to an investor’s understanding of market fundamentals.
All of the central banks of the industrialized world have stepped out onto thin ice and unknown territory where there is no place to safely move and no room to breathe. This is the bomb that could detonate in any or all markets at any time.
Gold is trading in India just below $3,000 USD. This could have been caused by a mistake between the central banks of India and the US Federal Reserve. This mistake is devastating for India economy while the best advertisement gold has ever had.
Bonds markets are doing strange things in the EU because of illiquidity and factors in the Euro/dollar market which are independent of all other considerations.
Stock markets have made record highs on no volume so once again illiquidity is raising its very dangerous head.
We will go into more detail on all of these points but for now, I urge you to do the following to the degree possible:
Hold your precious metals positions and remain calm.
Eliminate all or as much margin (credit) in anything, anywhere.
Have a least a month worth of cash at home.
Put all your securities into direct registration (DRS).
Do the basics of my recent articles on being prepared.
Situations may become more difficult but we can Be Prepared.