Gold is Beginning to Sell Off

Of course, everyone was happy, we all had hot dogs, made miniature bombs bursting in air, and allowed the stock market to burst to new highs of theoretical 9898 by 10.30 a.m.

Initial buys to our new recommendation to the call were not available. During that time, however, our put hit lows of 4.00, moving to highs of 7.80 during the trading day, for a signal we consider sold.
So, on a massively UP day, we first made money on PUTS, as much as 95%! And we took entry easily below best buy on the call, and still hold it as a trade.

Gold is beginning to sell off. This is a healthy and good sign for the short term.

It is not obvious that nations cannot be run on debt, as they have been for almost 40 years. Economists may argue the methodology of accounting, of debt, of how obligations are packaged, but in the end the "debt" has always been there, in the form of mortgages, mounting credit card debt, easy credit lines for corporations, forcing them to more debt, or to begin falsifying the books.
For ten years, in publication, Floyd has told us that all financial statements are false, or that at least the majority of the large corporations are. Enron was just the first to get "caught" but we can now see how many games were played, and these have been played since the early 1900's. Nothing has changed in the "core" or the basics, it is only the electronics, or the "way" the games are played that have changed.

None of this is new, and all of it has been done before.

Roubini Sees German, U.S Debt as Havens in Face of ‘Fragility’

July 4 (Bloomberg) -- Nouriel Roubini, the New York University economist credited with predicting the financial crisis, said that government bonds of countries such as Germany, Canada and the U.S. will represent a haven from increasingly volatile markets in coming months.

“It is going to be a period of economic and financial fragility,” Roubini said in an interview in Aix en Provence, France. “The short-term and long-term debt of countries not yet subject to sovereign debt concern will be havens,” he said.

The global economy will slow in the second half as deficit- reduction measures, notably in Europe, sap demand, Roubini said. U.S. growth will ease to about 1.5 percent by the end of 2010, about half its potential, while the euro area’s expansion may stall, he said. As a whole, the world should avoid a double-dip recession, he said.

“The next few weeks and months will be a time of volatility as the market surprises on the downside,” he said. “It’s a pretty ugly picture. The macro news from the U.S., Europe, Japan and even China is disappointing. Credit spreads will widen.”

Roubini spoke at a meeting of France’s Circle of Economists.
To Floyd, Roubini is one of the few economists who understands the situation we have created and that it is not so simple as "lower the deficit."