OK, So now what?

A number of events have occurred recently that are very important in determining economics and finance. These events included: 1. the decision of the ECB to buy sovereign bonds; 2. the decision of the German Constitutional Court to allow for German participation in the ESM and 3. the announcement of QE3 by the FED. We have thus completed the concerted action of States to fight deflation by money printing (OK, digitizing). These actions included the Chinese decision of spending $400B on infrastructure buildouts.

We may sit back a bit, contemplating of what to expect down the road. We have seen Stock Markets react as expected: they moved up as the currencies are cheapened. We are also seeing the precious metals go up in price, reacting to the de facto devaluation of currencies. US debt has been downgraded again.

In Europe, demonstrations are starting again, protesting cuts in pensions and such. The American Media crops the pictures of the demonstrators to conceal the red flags they carry. Spanish PM Rajoy promises a new economic plan later this month. It is rumored that Spain will ask for a bailout. Hopefully, the plan will include privatizing.

Of particular importance to some of us is the anticipated rally of the gold and silver markets. Some analysts anticipate gold to hit a new high soon and reach $2000/oz before the end of the year. Miners are the place to be to make money. Some people believe that we have entered the final phase of the PM bull market which may end a year or so after the election. Gold is anticipated to hit 5-10,000/oz and silver anywhere from 150/oz to $400/oz. Hard to tell this far out.

Oh, and expect Larry to capitulate.