Sunday, February 20, 2011

The Only Certainty Is Public Uncertainty

The only certainty is public uncertainty.

The can will be kicked down the road because it is the only policy option left.

Kicking the can through infinite quantitative easing, however, is no free lunch. The public is beginning to realize this axiom one day at a time. The messages behind the headline rhetoric are reduced purchasing power and shrinking standard of living for anyone unprotected.

Gold, silver, and stocks are moving higher as a result of infinite quantitative easing, also known throughout history as hyperinflation. The money flows and technical setups in the silver market can only characterized as unusual and explosive. As I have said before, silver will lead the transition to hyperinflation. That's exactly what it's doing.

All I can say is try to let the market do the "thinking". The message of the market is more important than personal opinion. Ego and emotions tend to be the domain of personal opinion.

Capital tends to anticipate rather than react. So must you.

SP 500 And Equity Diffusion Index (DI)



US Treasury Bond 20YR+ (TLT) And Bond Diffusion Index (DI)


Eric: The Boys on Capital Hill appear to be drawing a political line in the "sand" on March 4th the temporary funding for the nations budget runs out.
somehow the dust will settle and half-ass cuts will be made, the can will be kicked again.

Headline: It's Certain: A Government Shutdown Is Coming In Just Two Weeks

Barring some sort of deus ex machina, it seems certain that a government shutdown is coming in just two weeks (March 4, when the existing temporary funding bill runs out).

Source: businessinsider.com

I think this? Some of the stock market indicators are overbought. $CCI is borderline
Uncertainty will will loom over the market The dollar will again defy gravity and rebound, because of talks of cuts. Another attack on precious metals will begin
is my reasoning to simplistic or are we looking at another short term delay in precious metal rally.

Thanks BOB.C

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