"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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Euro Sliding Lower - Surrendering Gains
The morning euphoria tied to news of proposed deficit cuts in ITALY and news that both Germany and France had agreed to push for changes to the EU treaties in regards to tighter budget and deficit rules for member nations has given way as news hits the trading floor that ratings agency Standard and Poors is placing both Germany and France on review for a potential downgrade.
Other AAA rated European nations are also going to be placed on review. Once put on review, any downgrade could occur within 90 days.
Gold and Silver were both hit hard on the newsflash.
They were hit hard in morning trading in London while the EURUSD, Crude and EURUSD were strong. Made a comeback in first hour of trading (gold at 1747) and then went downhill the rest of the day even as stocks held up. The S&P rating news just thru in another pretext to have it smashed further, with gold hitting 1717.
ReplyDeleteThe massive theft at MF Global left thousands stranded with no accounts and the rest scared to get into the futures markets. A cold chill over the PM market undermines any counter balance to the naked paper short selling by the bullion banks allowing them to takedown the PMs anytime they please. These markets have never been more phony or manipulated. Its a total sham, scam, and fraud from top to bottom.
ReplyDeleteGold held at 1720, but nobody was there to catch silver as it went through 32. Markets still look bearish to me.
ReplyDeleteSee you at 1680/31 .
However, I only buy physical.
ReplyDeleteAnd I am still buying an allocated amount per month.
(I have a budget. I ask: how can one have "mandatory spending cuts", when one does not have a budget?)