Obama speaks tomorrow, and the Swiss are joining the fiat flight to the bottom of the barrel, as each nation tries to beggar their neighbor and join the mercantilist daisy chain.
So the financiers had to hit gold to take it out of the spotlight. We may see more bear raids in the paper trade, supported by physical buying as Asia and the developing world recapitalizes their banks with precious metals, shedding the dollar reserve currency, which is a holdover from the declining order of international finance.
The most blatant raids were put on gold last night with orchestrated selling hitting it in the off hours, including a two percent drop in minutes as massive paper selling hit the bids.
"Spot gold dropped nearly $40, two minutes after U.S. gold tumbled about $50 over three minutes. Cash gold prices since regained some lost ground to $1,836.26 an ounce by 0559 GMT, down 1.5 percent. U.S. gold GCcv1 dived to as low as $1,818.2, and was trading at $1,839.10, down 1.8 percent from the previous close. "Someone dumped a big position with little care, which set off stops and caused the price to cascade even lower," said a Singapore-based trader. Some traders talked about some 4,000 lots of gold being dumped on COMEX…"And yet the price found resilient support in the 1820 area where we expected it, despite the overshoot on the big decline into the 1790s.
Reuters
I bought back some of my gold position today as the price overshot support and dropped below 1800. We have a confirmation of a familiar support level around today's lows.
They try to make these things look complex, and frightening, but they are really not.
The debts will be discharged by growth or by default, or some combination thereof. The defaults will be done largely by printing money.
Growth is a dirty word in the west, because the fortunate and powerful are in control and wish to impose their brand of neo-feudalism, similar to that which is already in place in China and Russia with their own brands of authoritarian oligarchy, masquerading as capitalist markets.
And so we will see printing around the world, by the debtors and the exporters. Where this will all end who can say with certainty. But it will end, and badly.
