‘Financial Smoke’ Before the Fire?


Oh these are interesting times… Let’s, for something different, look at some of the headlines you’d wake up to on Bloomberg’s home page today…

“DJIA -261 (-1.47%), Nikkei -638 (-3/.14%), Shanghai -220 (-5.9%)”

“NYSE Resumes Trading After Hours-Long Halt” – (paper v hard asset)

“More Loans – Consumer Borrowing in US Increased $16.1b in May” - (debt party continues)

“Nuclear Negotiations – Obama Reduces His Odds on Iran Nuclear Deal to Less than 50-50”

“Greek Under the Gun to Produce Debt Reform Plan to Keep Euro” – (bank closure extended – have you got money outside the system?)

“FOMC [Fed] Minutes Released – Fed Officials Tempered Economy Optimism With Concern on Greece” – (more words in lieu of rate rise)

“Gundlach Sees Greek Euro Exit Opening ‘Pandora’s Box’”

“China ETF Posts Record Drop Amid More Efforts to Arrest Rout” – (Chinese market crash - same happened just before GFC)

“Risky World Makes Treasury 10-Year Auction a Buyers' Paradise” - (yet many calling the bond market the likely trigger for next crash)

“We Break From the NYSE Crisis to Ask: So How Are Commodities Doing?”

“Yield Curve Shows Greece, China Wreaking Havoc on U.S. Outlook”

If you didn’t have home insurance and could take it out when you smelled smoke you definitely would wouldn’t you?  Gold and silver are wealth insurance and the above represent just some of the ‘financial smoke’ wafting right now.  The thing is house insurance only pays replacement… gold and silver at these low prices could pay the jackpot…