“Since ancient times, credit markets have undergone periodic booms and busts. In 594 BC, for example, the Greek state of Attica found itself under severe economic stress because of the massive debt incurred by many of its citizens. The ensuing civil disorder resulted in a handover of power to Solon, one of the ‘seven wise men’ of Greece . Solon took radical steps to restore balance to the economy, such as canceling debts, freeing those enslaved for failing to repay their loans, and devaluing the currency by 25 percent.” FDIC Outlook, Summer 2006
The metals soared today breaking out across the board with mining stocks starting to follow. It appears that we have hit the target of 1455 which I had called out when gold was trying to break out of the big cup and handle formation around 1200.
The bulls need to stick the breakout, and resist any attempts to break back down again, and set up the next leg up to $50 Silver and $1590 Gold.
I think it will take a stock market crash to stop this advance which is intimately tied to global monetary expansion and a corrupt financial system.
Not yet, but some day. Down Goes Morgan, Down Goes Morgan..
At some point they will be carrying them out of the silver pit on stretchers.
