Markets in sink.

We see the Markets moving in response to a yet secret Quantitative Easing. Gold is rising, silver is moving even faster and oil has reached $80/bbl. At the same time, the dollar is dropping at a rather fast rate. All the Markets are now in sinc.

Irish eyes are NOT smiling.

The unraveling of paper currencies continues. Ireland's spread between its bonds and German bonds hit an all time high, which means that Ireland has to pay a lot of premium to roll over its loans. But, the Irish do not have the capital and will have to be bailed out. Cost? A reported $25B. Doable? Perhaps. But, the Markets are already lining up Spain for a hair cut. Spain's debt has been downgraded and its inability to pay will become clear shortly. Of the EU members, none is keeping within the required 3% annual deficit. Which means, more money printing. Will the German banks absorb the cost? Unknown at present.

Gold has moved to $80/bbl. We have seen this pattern a number of times - oil moving up to 80 then backing off. However, oil is now rising in context of a falling dollar and so the oil price may stay above $80/bbl as we go forward.