On the gold front.

Much has been happening on the gold front.

1. Goldman Sacks and J P Morgan forecast a drop in gold prices.

2. Larry Edelson also forecast a drop in two ways: 1) either a  slow drop to about 1050 or 2) a rise then a cycle inversion and a drop to 1050. Larry seems to be shooting blanks again.

3. Harry Dent is forecasting the DOW to drop to 3,300 and gold to $250. What is Harry's rationale? Harry Dent bases his forecast on the $17T Federal debt and the $32T private and bank debt being destroyed and extreme deflation setting in. Harry forgets one thing: the FED can print unlimited amount of money,  which will push us into inflation and not deflation.

4. The German Bank Regulator (Bafin) has admitted that gold prices are even more rigged than the LIBOR. Deutsche Bank has quit the London cartel that provides the gold fix. Why? This reminds people of the Rothschilds qitting the same when gold was $400/oz. You can make a lot of money if you are outside the cartel when prices goup.

5. Germany has about 3,400 tons of gold. Most of it is in the US (stored allegedly by the FED) and some in France. The Germans asked for 300 tons of the gold. The FED promised it in 7 years. They have returned 5 tons. The FED is in default.

A lot of people expect gold and silver to break out this year, perhaps this month.