With the Fed telling everyone this week that it’s going to continue debasing the dollar, to buy Obama’s election at the end of the year, gold has rocketed.
Which means I’m going to predict that Mr Eric King’s voice will be about an octave higher, and his word-per-second rate 20% up, over the weekend, on his podcast interviews.
We shall see, of course, what the plutocratic kleptocrats do once gold hits $1,900 again (the doorway to $2,000 dollar gold).
Will they smash it down again, with their leasing tricks, or will they hand up the white flag and let it crash through $2,000 dollars, to make Mr Roubini look like a Klutz?
It’s a tricky one.
Have they run out of bullets? Was that last smash down to $1,600 the last bazooka in the closet, or can they smash it down again?
I’m sure that we’ll find out soon. My prediction (for what it’s worth), is that if they do let it go at $1,900, then $2,000 will be a heartbeat away, and then we’ll race up in short order to the next ‘psychological barrier’ at $2,400 (the gateway to $2,500), when the next big smash will occur, perhaps down to the $2,100 level.
But I’m basing all of that on the feeling in my big toe, and by the way Venus is aligning with Orion at the moment, so you have been warned.
In the meantime, if you’re feeling a little KWN-deprived, at the moment, here’s Mr King’s latest interview with Mr Eric Sprott.
As well as all the usual topics, they also mention Iran’s policy to sell oil for gold, to India, and probably China, which turns gold into money, and will increase the demand for gold (unless, of course, the U.S. government can take Iran out of the oil-producing game, with whatever it takes to get Iran to fire the first shot).
There’s also a little on Greece, the ECB, the European banking system, plus what Ireland and Portugal will do if Greece gets away with a 50% haircut.
Take it away, the Two Erics: