Gold & Silver are in a third leg down and interest rates are in 3rd leg up.The down move in Gold is not over yet. In spite of Federal Reserve buying $85 Biilion dollars worth bonds, the interest rates are going up as people around the world are selling hundreds of billions of dollars worth of bonds. After early morning rally, the market should start their downward march latest by tomorrow.
We have taken the following interview from a well known technician Roger Wiegand
Tuesday June 25, 2013 10:38
RW: Gold is taking a pounding since the big
bullion banks have full control and they have to cover their radical short
positions taken at the behest of the FOMC and U.S. Treasury to preserve the
fiat markets. Briefly, they kept the gold market under control to prevent a
runaway for the FOMC and are now using TARP bank capital and derivative dollars
to drive gold to the basement. Next, they are accumulating all the gold bullion
they can to preserve their wealth in the forthcoming legendary crash. In
addition, they get to buy it on the cheap as the dumb money is in full exit in
fear.
Also, China, South
Korea and Japan have problems and each central bank is dealing American bonds.
Recently, China sold American paper through its own markets in order to offload
Treasury bonds for currency. All kinds of problems are looming in China; some
experts claim that China's export trade numbers are only half of what was
actually reported. South Korea is clearly weakening, and Japan is experiencing
an emergency, causing it to stimulate at twice Mr. Bernanke's rate. That is
simply unsustainable. Japan is the Achilles heel of the whole financial system.
If the yen runs away, it's a disaster.
What does that mean
for gold? Starting in August, the price will likely rise until the end of
September. Then harsh political and economic factors will create serious
problems in the global markets: I'm calling for a 50% correction in the U.S.
stock markets in Q4/13.
TGR: In your June 6 newsletter, you said that
we are on the verge of a brand new world.
RW: The brand new world is imminent because
the lessons of 2008 were not learned. The banks are doing the same bad things
they were doing before the crash, only worse. The derivative markets are larger
now than they were back then. A huge number of student loans might well be
written off. And the real estate market is doing a rerun. Incredible! People
with foreclosures who may not be qualified for a new mortgage are receiving
Federal Housing Authority-insured loans in a desperate effort to try to prop up
the home loan industry, which is a major sector of the U.S. economy.
We are in a
depression, not a recession. The real numbers for unemployment in the U.S. are
25%. They were 25% in the 1930s. In Spain, 54% of the workers under age 25 are
unemployed. The down-the-hill slide is global and in slow motion. People still
believe a lot of media nonsense, but this market simply has not corrected. The
ultimate jobs program will be a new war.
TGR: Where do you think a war will break out,
Roger?
RW: Iraq is cranking up for another round.
War is on the agenda in Turkey. Libya has bad problems, not to mention the
horror that is Syria. China is beating a war drum, but that's just talk. North
Korea is not capable of going to war. But more wars over energy resources will
continue to break out in the Middle East.
War creates jobs. World War II ended the
Depression of the 1930s. I don't think there will be a nuclear war, but three
or four conventional wars can go on simultaneously, hire a lot of people,
square away the economy and get things righted in the bond market."
How many times
does the federal Government manipulate the data? They announced today
that GDP went up only 1.8% instead of 2.4% as given out earlier. How can you be
wrong by 25%? It clearly shows that they wanted the stock market to go up and
so they gave a preliminary estimate of 2.4%.
So as far as the markets are
concerned, we are going lower no matter what the talking heads tell you on
CNBC.
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