The beginning of the ened.

Monday, Larry's weekly update came out predicting the coming collapse of the Stock Market, gold going to 1,400 maybe 1,200 (in round numbers), silver to hit $22/oz and the Dollar exploding on the upside. Since then the Market kept going up, gold shot past 1,700, silver hit $33 and gold mining and silver mining stocks added at least 10%.

I was tempted yesterday to collect the data and show you how this is true, but today it seems obvious. The question is WHAT HAPPENED?

Tuesday the FED Committee met and yesterday they announced their intention. Unlike Larry thought, the FED is not going to wait untill the Stock Market collapses but intends to hold interest rates near zero through 2014 and they "did not rule out" FURTHER BOND PURCHASES (note the plural). QE here we go again. From Europe comes the news that holders of Greek bonds are not willing to take a 50% loss - a step which is irrelevany anyway, since Greece is not able to pay even that levekl of debt. Meanwhile, the Finance Ministers of Italy and Spain tell us that their countries are unwilling and unable to do the reduction of deficit as agreed to and demand that the ECB provide the funds to buy their bonds and stimulate the economies of European countries.

So the US Dollar began to plunge and is now flirting with 80 on the down side and gold has begun to rally. Gold and silver miners are gapping up today and the gold and silver bears are scrambling to cover their shorts. Tower Hill Mine (which has $400/share value of gold in the ground at GOLD=2000/oz) shotpast $5.5/share.

Let's put it this way: chances of Larry being right are rapidly diminishing.