Marc Faber & Peter Schiff: It Is the Volatility Stupid!

Market Timing Signals
S&P500, Bonds and Gold
=> ST SELL SIGNAL<=
as of 12/15/10

-------- Original Message --------

Subject:	Mkts… It Is the Volatility (Uncertainty), Stupid!
Date:	Fri, 17 Dec 2010 08:17:17 -0800
From:	Jas Jain

Mkts… It Is the Volatility (Uncertainty), Stupid!
Pl. see the attached chart. Gold is not forecasting inflation, as charlatans like Marc Faber and Peter Schiff have been claiming for years, but uncertainty in the global financial markets as a result of the idiotic, and fully predictable, behavior of democratic governments in pushing public debt as the solution to economic problems and protecting the bankers and financiers. America is the worst abuser and the rise in the price of gold in USD reflects nothing more than that. The global financial markets would collapse if the US really tried to inflate its way out of the debt problem. The markets would force Americans to live with less compared with the artificial boost in the living standard in the recent years via consumption debt, first by the households and now via huge deficit spending.
 
Going forward, Gold and the Scam Market are near their highs and the Treasuries are near their lows. If and when gold crosses above $1,500 and stays there we can conclude that the US government is unable to deal with the economic reality and trying to kick the can down the 2-year election cycle as it has been doing since late 1990s. Republicans would force Obama into a corner as he desperately tries to get re-selected by the Crooks. It is possible that Crooks might abandon Obama in favor of some other Democrat if he tries to shift to the left and his base would abandon him if he tries to shift to the right. Obama would not be able to triangulate as Clinton was able to do. Conditions are very different.
There is always some message in the markets if one filters out the noise and the volatility.
Jas