Monetary imbalance grows

Just as the FED is thinking of getting out of the QE business, the financial world is losing its moorings. Just as the world is falling apart, we would expect gold prices to skyrocket as investors seek the safety of gold. THAT IS NOT HAPPENING.

 What we see instead is that gold is heading to its low of 1180 since gold slipped back into this latest downturn. In fact Larry has turned a bear and is forecasting gold to hit $930.

Silver has already broken past its low for the cycle and is in free fall.

This time we dot claim that the PMs are being manipulated, but that the drop is promoted by the terminal rise of the US Dollar.

What we see is the terminal blow off for the USD as more and more international trade is being done in other currencies, but people are fleeing the Yen and the Euro. This process will end badly for us as the Reserve Currency status of the Dollar is being attacked.

When will sanity reassert itself? When the PMs resume their run. When will that be? Larry forecasts the turn to be in January with gold at $950/oz. I see it happening sooner.

How will you know? Gold is heading for a retest of 1180. If that holds, that may be the turning point. Or, if the insane blowoff in the US Dollar stops.