Saturday, March 21, 2009

The Gold Price and Armstrong's Cycle

March 19th was the top of Martin Armstrong's mid down cycle uptrend. On the 18th, the gold price and the silver price made big gap up moves probably never to get closed. The US dollar made a big move to the downside. And, US government debt made big moves to the upside (by people that do not understand the significance of the Fed buying US Treasury debt). The Endarkenment is well underway.

The 19th was the day the Fed ran hard a ground announcing the purchasing of US Treasury debt...

and put a call out for larger "money" pumps:


Jim Willie:

" ...
If the USTreasurys are so pristine and risk-free, then why did they recently hit 1.00% for Credit Default insurance protection cost? The 5-year USTNote bears roughly a 2% yield, but its default insurance cuts that effective yield to 1.0% only. A year ago the same default insurance cost a mere 1 basis point, as in 0.01 percent, one hundred times less. Maybe someday soon the shorter term USTreasurys will cost in default insurance more than their measly yield paid out. The world's financial markets are realizing that USTreasurys are not so free of risk at all, and surely not a safe haven. ASK THE CHINESE FOR AN OPINION.
.... "

Finally, Zimbabwe's hyperinflation blows up:

Zimbabwe chooses rand as reference currency

HARARE, March 20 (Xinhua) -- The Zimbabwean government has chosen the rand as the country's reference currency but will not randify the economy, local media said.
"STERP, responding to the hyper-inflationary environment, will permit use of multiple currencies for all business transactions, including stock exchange trading, sale of agricultural commodities and payment of salaries.

"All taxes will, therefore, be paid in foreign currency," the minister said. The government adopted a multiple currency trading system last month where the rand, the U.S. dollar and Botswana pula operate as legal tender alongside the Zimbabwean dollar.




10 year note:

US dollar:

The 18th was a Wednesday, the day of the big gold price, silver price, US dollar Index and US Treasury debt moves. Unlike the dollar and debt moves, gold and silver made their moves after the Comex closed on Wednesday, so that their moves show up in the futures charts on the next day, Thursday. The June 13th, 2011 date is ominous for US stock markets. There are many that still do not get the enormity of what is happening or are simply in denial. Both of these could end soon so that the US stock markets continue their major greater depression down trend.

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