The big news today and tomorrow is not the Fed meeting. I have received calls and e-mails asking what I thought the Fed would do. I have had others pontificating that the Dollar would do this or Gold do that in the aftermath. Who cares? I mean really, WHO CARES? We already know that mathematically the Dollar is a dead entity. We already know how this will end financially, so were Gold to drop or explode (actually, should the Dollar do this since an ounce today is still the same ounce tomorrow), what difference does it make?
The Fed is in a box no matter what they say or do. They will be forced to QE in the form of buying any and all Treasury securities that are offered and not purchased by the market place (our creditors). This is an absolute. It is also absolute that the amounts necessary to prevent a financial and economic collapse will be higher in the future, not less. So does it matter whether Gold goes “up” or down”? Does it matter whether it happens now or later? No, keep your eye on the ball here. The Dollar by the way has broken the “80″ level versus foreign currencies so we are now, again, devaluing faster than the rest of the world.
What is big news today are the embassy attacks in Cairo and Libya (Chris Stevens, U.S. ambassador to Libya killed in rocket attack, served as envoy during revolution) where our Ambassador was killed (State Department officer killed in attack on US Consulate in Libya, following Egyptian protest at US embassy). This, on the same day that Benjamin Netanyahu requested a meeting with President Obama and was denied because of a “full schedule” (White House declines Netanyahu request to meet with Obama). I am not trying to turn my writings into a “political” blog, but how stupid is it that the White House then, after denying a meeting with our supposed number 1 ally, announces that the President will appear on The David Letterman Show? Does this even make sense?
Also, quietly and in the background (and coming to a theater near us soon) is rumored news that as of the first of the year, NO TRANSACTIONS in Italy may be made with cash over 50 Euros. THIS is outright capital controls and a very bad sign of things to come. Next will be how much you can spend or access on a daily basis just like Argentina 10 years ago. This news is still “speculation” but full fledged capital controls are something that everyone needs to prepare for no matter where on the planet you reside. Capital controls have been used many times by many different governments in the past, it will be done again…EVERYWHERE, and soon!
Folks, what we are in for is worse than ugly. The financial system is in the process of going upside down, “the state” everywhere is preparing for this through control of everything and the makings of a war over religion could ignite at any moment for any reason no matter how small. I do not often and have only 3 times in the last 5+ years issued a “crash alert” but we are there again. We are spinning out of control and the “handlers” have too many balls juggled up in the air at one time, make sure that whatever preparations you plan to make…are completed by the weekend.