The world proceeds as we expected. Europe is mired in ever more problems and default threatens Greece and Hungary. The Greeks are puttingup national companies owned by the government as collateral for bonds. I wonder if it will work. It's one thing to dell such enterprises for cash, it's another to put them up for collateral. Will investers bite - that's the question. Hungary is begging the IMF for a bail out while the IMF is trying to stop the FIDESZ govt of Hungary from amending the Constitution.
Meanwhile, gold and the Dollar have moved as forecast by Larry Edelson except: 1. gold bounced off from $1,450 and 2. it no longer runs opposite of the Dollar. As you can note, while the Dollar rose, so did gold. Now, gold is hovering around 1,600. Larry forecasts gold to fall and fall, but it does nor appear that ready. Except, that gold failed to close above its 200 day moving average producing what is known as "the kiss of death" formation. Bearish.
The forecast is for a black swan event between now and May and Larry's forecasts call for gold to bottom in February. The markets are not telling us much tonight. They simply continue as last week.
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