Historic moves with Gold and Silver. It seems cracks are surely forming in the global fiat financial system. Of course, the paper gold/silver markets are leveraged probably 100-1 and no doubt full of fraud. And politically, governments can outlaw the holding of gold (and now silver) as Roosevelt did in the 1930’s. But the rapid price moves up indicate that the global financial system is coming under stress that the major banking powers are not used to. What it all means from here, I’m not sure. But sentiment on Gold and silver remains historically highly elevated. Everyone seems to wait on a large pullback, but when that comes, the pullback might last several months and/or years.
Of course, everyone always says this means the “death of the dollar” (as if any other global fiat currency is any better!). I’ve always said it is the underlying bonds –that are redeemed into dollars (or whatever) – will collapse first. I mean, isn’t this obvious? No one goes around buying food, eggs and fuel in bond payments. No, they sell their bond holdings and redeem them with dollars first. Then they buy eggs, food and fuel…
So, the bonds are worth less than dollars. Both are paper promises that cannot be filled. But we don’t sell dollars into bonds, the market is setup to do the opposite.
Lots of bond stress in Japan. They have gone the deepest and the longest into bond fiat hell. Therefore, they might be the canary in the coal mine concerning the coming global collapse.
Don’t look at the price of fiat currencies…they are all trash comparing each to each other…but look at the underlying bonds that prop up those currencies. The bonds will fail first. I’m not saying that the fiat currencies will not also fail…just that there is an order of breakage. That is how the system is setup. It is a global credit system. Credit = money. The failing credit collapses first.
WAVE COUNTS
The ending diagonal triangle may still be in play:
The other count (and I’m not sure which will win out) is a series on ones and twos in wave 5 and we will have “upside surprise” soon next week. This is kind of a weird looking count.
Industrials now taking 3 stabs at breaking out.
The following 2 charts so differing degrees of wave count, but overall, that doesn’t affect the “peak count”.
NASDAQ floundering at the top for 4 months:
China:
Very nice count on Japan!
All-time highs in junk debt. No fear here!
Please note what they do, not what they say. The CPCE hasn’t had hardly ever had a bearish day in many, many months. Still not real panic.
