Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19
The Exponential Stocks Bull Market Explained - Video - 13th Mar 19
TSP Recession Indicator - Criss-Cross, Flip-Flop and Remembering 1966 - 13th Mar 19
Stock Investors Beware The Signs Of Recession / Deflation - 13th Mar 19
Is the Stock Market Still in a Bear Market? - 13th Mar 19
Stock Market Trend Analysis 2019 - 13th Mar 19
Gold Up-to-Date' COT Report: A Maddening Déjà Vu - 12th Mar 19
Save Fintech? Ban Short Selling. It's Not That Simple - 12th Mar 19
Palladium Blowup Could Expose Scam of Gold & Silver Futures - 12th Mar 19
Next Recession: Concentrating Future Losses & Bringing Them Forward In Time As Profits - 12th Mar 19
The Shift of the Philippine Peso Regime - 12th Mar 19
Theresa May BrExit Back Stab Deal Counting Down to Resignation, Tory Leadership Election - 12th Mar 19

Market Oracle FREE Newsletter

Stock and Finanacial Markets Trading Analysis Worth

Economies are Crumbling as Governments Play Musical Chairs with Money Printing

Economics / Quantitative Easing Nov 16, 2010 - 05:43 PM GMT

By: Captain_Hook

Economics

Best Financial Markets Analysis ArticleIf there were a truism to fit a broad cross-section of behaviors in our society today, the catchphrase ‘desperate men do desperate things’ fits well, for sure. This is because you can see it everywhere on an increasing basis as economies of all shapes and sizes disintegrate. And it spreads like a disease, reaching all quarters of our society(s), in one way or another, propagated at the core by greedy money-center bankers and their political oligarchs hopelessly attempting to prevent a collapse of the larger fiat currency economy, hegemony economics, and US Dollar ($) supremacy. Here, it’s important to understand that when the US can no longer print the money to pay its bills the present game of musical chairs will cease and centralization will quickly reverse into regionalism, returning us to more primitive but sound economies.


The following is commentary that originally appeared at Treasure Chests for the benefit of subscribers on Tuesday, November 2nd, 2010.

And we may in fact be closer to such a reversal of fortunes than most would like to think, evidenced in unfaltering demand for gold, and silver, now being remonitized to it’s rightful role as money as we speak. But of course you likely already know this if you have been reading our work these past months and years, where sure enough, the time has now arrived. Along these lines, very soon desperate bankers could be forced to cover their large short positions in gold and silver, which could spark a condition known as commercial signal failure in these markets, which is a fancy way of saying the outsized naked short positions these money-center bankers have been allowed to build via the help of a corrupt bureaucracy will need to be bought back, taking prices materially higher.

Why now? Because on every level, right from the banking system, to the government, and all those in the bureaucracy, are bankrupt, and they need to print ever-increasing fiat currency to support their bloated existence(s). And the thing is the foreigners know this, with the greater Western alliance under pressure. And they also know that austerity measures will be forced on America eventually as well, which will bring the house of cards down in a hurry. (i.e. think collapsing credit markets.) Of course in the meantime, desperate men will continue to do desperate things, like continuing to print copious amounts of fiat currency (think QE2, QE3, etc.) and monetizing the bond market (to maintain the illusion of wealth with artificially low interest rates), which will weigh heavily on the $.

This is all by design by an increasingly desperate Fed naturally, so don’t worry (heavy on the sarcasm), as it’s the devaluation of the $ that has been holding world financial markets together for quite some time now. (i.e. it peaked in 1985.) And you can count on the Fed (and other central banks) becoming even more obvious and desperate in their actions moving forward as the economy continues to disintegrate despite their best efforts, which is why they will need to keep increasing such efforts (money printing), and why stocks (to a lesser extent), commodities, and precious metals could remain buoyant well beyond the reaches of ‘normal cycles’, whatever that means. Naturally what this means is we are witnessing Super-cycle Degree cycles that can go far beyond a sane man’s expectations, and to new heights, as desperation (and greed) grows.

So expect the money printing to get stupid, and the reaction in precious metals prices sobering, which is what our price managing bureaucracy is finding out about right now with silver threatening to break above $25 on a lasting basis, possibly on its way to $50 in short order. You will remember from previous discussions on this subject matter that no historical resistance resides above $25 for silver until it doubles, where in a commercial short squeeze scenario, this could happen very quickly, and in spite of the non-constructive sentiment conditions currently characterizing open interest put / call ratios across the precious metals complex. (See Figures 17 to 20) This is of course why we have schooled the accumulation of physical precious metals in a core buy and hold strategy designed for exactly this condition set where from a traders perspective gold and silver are overbought and risky, while at the same time still possessing explosive upside potential.

More will be said on precious metals below, however first we would like to take a better look at the broad measures of stocks by moving onto the charts. Here again it appears we are about to get a lesson in just how desperate these money-center bankers are as they attempt to print their way out of every mess by tripping the light fantastic in tech stocks again, just like in the year 2000, sending them into bubble trajectories once more. Such a move will of course most likely fail with far less fan fair than the last round in 2000 short of hyperinflation, however that is what the market is suggesting by positioning itself as it has been, leaving the door open to a devastating turn lower in equities et al next year. In the meantime however, if the S&P 500’s weekly chart’s upside potential is traced out in coming months, it looks like it could work its way up 100 points or so moving forward. (See Figure 1)

Figure 1




And it’s not just the S&P 500 that appears to have a good deal of upside potential in it at present, the NASDAQ also looks good in this respect as well, looking to break higher to Fibonacci resonance related resistance at 2750, at a minimum. This hypothesis is supported, as with similar circumstances for the S&P 500 above, by Fibonacci resonance related signatures in on balance volume (OBV) and accumulation / distribution indicators that are not fully traced out as of yet, which would sponsor such moves higher. It should be noted conditions will likely never get as crazy as they were back in 2000, which we will elaborate on below, however for our purposes we need to know what is what here so that 1) we know how long the inflation trade should stay alive; and, 2) when to get short. (See Figure 2)

Figure 2


In relation to just how crazy things might get in coming days, weeks, and months then, we have the monthly NASDAQ / Dow Ratio plot from the Chart Room below that has the varying degrees of mania defined for you, where we are in fact on the very cusp of entering the more moderate bubble making zone that has defined the trade throughout the years. And make no mistake about it; we will likely enter this zone as stocks are further inflated by an increasingly debased fiat currency economy. (See Figure 3)

Figure 3

Unfortunately we cannot carry on past this point, as the remainder of this analysis is reserved for our subscribers. Of course if the above is the kind of analysis you are looking for this is easily remedied by visiting our web site to discover more about how our service can help you in not only this regard, but also in achieving your financial goals. As you will find, our recently reconstructed site includes such improvements as automated subscriptions, improvements to trend identifying / professionally annotated charts, to the more detailed quote pages exclusively designed for independent investors who like to stay on top of things. Here, in addition to improving our advisory service, our aim is to also provide a resource center, one where you have access to well presented 'key' information concerning the markets we cover.

And if you are interested in finding out more about how our advisory service would have kept you on the right side of the equity and precious metals markets these past years, please take some time to review a publicly available and extensive archive located here, where you will find our track record speaks for itself.

Naturally if you have any questions, comments, or criticisms regarding the above, please feel free to drop us a line. We very much enjoy hearing from you on these matters.

Good investing all.

By Captain Hook

http://www.treasurechestsinfo.com/

Treasure Chests is a market timing service specializing in value-based position trading in the precious metals and equity markets with an orientation geared to identifying intermediate-term swing trading opportunities. Specific opportunities are identified utilizing a combination of fundamental, technical, and inter-market analysis. This style of investing has proven very successful for wealthy and sophisticated investors, as it reduces risk and enhances returns when the methodology is applied effectively. Those interested in discovering more about how the strategies described above can enhance your wealth should visit our web site at Treasure Chests

Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, as we are not registered brokers or advisors. Certain statements included herein may constitute "forward-looking statements" with the meaning of certain securities legislative measures. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the above mentioned companies, and / or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Do your own due diligence.

Copyright © 2010 treasurechests.info Inc. All rights reserved.

Unless otherwise indicated, all materials on these pages are copyrighted by treasurechests.info Inc. No part of these pages, either text or image may be used for any purpose other than personal use. Therefore, reproduction, modification, storage in a retrieval system or retransmission, in any form or by any means, electronic, mechanical or otherwise, for reasons other than personal use, is strictly prohibited without prior written permission.

Captain Hook Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules