Market Tectonics and Cataclysms that Follow

Yes indeed, gold had a nice strong move on this, the last business day of July 2016.  But again, as I have been saying, a dramatically higher gold price is not a good thing. What is good is that you own gold when it starts to rise because it may well help you avoid nearly as much pain in the dark days that lie ahead of us than if you do not own it when the global economic system, which is based on Keynesian lies, comes to a horrific end.GoldTbond

DollarAs long as the world still views the T-Bond along with gold as a “safe haven,” those of us who are enjoying the benefits of owning gold in one form or another can continue to enjoy the best of both worlds. By that I mean a semblance of civil order and markets for our basic needs that still function more or less normally. For sure, no one in their right mind wants to see a $10,000 or $100,000 gold price if with it comes a world akin to the hellish conditions of an Iraq, Libya, or Syria. And so while I am happy to see my portfolio gain in value now while I can still buy and sell gold and use it if I wish to buy necessary life-sustaining goods and services, I do not look forward to a world in which the con artists of Goldman Sachs or J. P. Morgan Chase have orchestrated a gold market where the bid for an ounce of gold is $100,000 but no one offers to sell at that price. That would mean that the value of the dollar is virtually worthless so that those who don’t own gold will be left to use whatever drastic means necessary to obtain the food and oxygen to stay alive. I don’t know about you but I don’t care how many ounces of gold I own. That is not a world I look forward to living in.  Let’s hope nothing that drastic comes to pass. Meanwhile, however, on this last day of July we witnessed some very significant moves in the most important markets on the planet.


                                          GOLD                                                                                      US T-BOND   














                       US DOLLAR                                                                  Michael Oliver’s Summary

While Michael tends to be a bit more optimistic than your editor about the state of the world and rising resistance of the existing ruling elite, the views he expressed on my show last Tuesday, certainly as they pertain to the credit markets, provide a rumbling noise from the bowels of the world’s financial markets that suggest life-changing moves. His technical work now tells him that the Japanese, German, and U.S. T-Bonds are in a blow-off phase, which means we will soon see interest rates around the globe starting a rather sudden rise at a time when the world’s economies are addicted to credit like never before. What will result from a sudden rise in rates that central banks are powerless to reverse and the loss of confidence will lead to unimaginable carnage in the financial markets as well as the real markets. Is there any way that the equity markets won’t crash even if the Plunge Protection Team and other central banks continue to buy top S&P stocks? Is there any way we won’t see trillions of dollars of helicopter money showered on the American people, sending prices of real goods and services hyper inflating, the dollar crashing, and gold denominated in dollars rising to unfathomable levels? If you can think of a way confidence can be maintained in a system in which central bankers are powerless to control rates and avoid global carnage, let me know. In the meantime, listen to Michael’s comments in the opening segment of my show last week as well as the remarks on inflation/deflation by John Rubino and David Wolfin’s exciting plans for Coral Gold. Listen here:

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.