Asset across the board are rising today [27 Sept 2011] .
What the news are not telling us is
that there was a mass scale liquidation that happened in last 3 days .
All assets including gold , oil , stock fell by massive % .
While the media was busy proclaiming that gold rally is ending and news
like that it did not for once tell us of the liquidation with the big L
that happened over the weekend .
Oh yes there was flight to safety towards USD . But from where and why ?
It was from European banks .
Connecting many dots like this . What we just witnessed is liquidity
squeeze on European banks , including those not from PIIGS nations .
Without getting into reasons and ethics of this . The point is it was a
controlled rehearsal of grand scale on what bank aka currency crisis will
look like .
Now news are flashing that all markets are up on euro optimism . I feel they are right . With this grand rehearsal there ought to be some TARP like bailout announced by EU and ECB . Which can effectively lead to rally . How long that will go on , we dont know for sure . But end it will in very short time is sure .
A country that have debt in multiple of its GDP spends equally big amount in interest payments on that debt . So crack such an economy is a must . Either by devaluation of massive kind or by default . Take your pick .