U.S. Economy : The Philosopher’s Stone

Another incredible video from Aravoth. Be sure to note the dates shown during the clips of Peter Schiff and Ron Paul warning of the economic crisis now upon us.

Today:

Dow -99.80  (-1.12% ) 
Nasdaq -10.58 (-0.67% ) 
S&P 500 -8.76  (-0.96% )

US Dollar Index At 9:38PM ET: 78.57   -2.11 (-2.62%)

Fed Finale = Gold Overture

Yesterday’s Fed rate cut-induced euphoria gave way to sober and more defensive plays among investors. By this afternoon, oil prices slipped to under $41 as OPEC failed to convince traders that its output cut would be effective in generating higher prices in the face of fast-slumping global demand. Stock markets turned negative as financials and utilities dragged and as investors once again showed a preference for Treasurys, gold, and little else as they seek to preserve capital.

The Fed cut rates to a ‘range of from zero to a quarter’ and promised to deploy everything in the way of deflation-fighting weapons available to it, should the conditions show further deterioration. Levels of confidence in the global economy fell this month as the US-led recession spread to the rest of the world and made for an ugly year-end picture for many a hitherto immune country.

The US dollar continued its sharp correction, slipping to just under 79 on the trade-weighted index and gave indications of a growing de-couple from oil (if not yet from stocks). The greenback fell by the most against the euro since that currency was born in 1999. Against the yen, the American currency traded at near 13-year lows.

Gold prices naturally made significant gains in the wake of the aforementioned conditions, with spot bullion trading as high as $882.50 an ounce early in the session. Light profit-taking was then seen developing in the afternoon, with prices easing back to $868.60 per ounce at last check. Caution remains visible and neutral-to-defensive plays are advised by deflation-watchers. Mr. Dennis Gartman comes to mind. Inflation-scouts are at the top of their form in the meantime. Rooting hard.

Silver was up by 17 cents, quoted at $11.38, while platinum added $3 to $866 and palladium fell $2 to $176 per ounce. Carmaker Land-Rover Jaguar was seen fighting for its survival and sought talks with would be surrogate parents.

Continue reading…

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