Tuesday, May 3, 2011


After what should be a brief pause this week commodity markets will move into the greatest rally of the last decade. As usual I will stay focused on the precious metal markets. They have been the leaders during this entire move out of the `08 bottom and they will see the largest parabolic move of all commodities during the final leg up.

I've noted in the past that consolidation size is usually a good leading indicator of how large the following rally will be. Gold just consolidated for 5 months. That is going to produce a massive rally. It's already produced a large move and it's just started.
Gold and especially silver have already come much further than I originally expected at this stage of the game. I was looking for gold around $1650 and silver at $50 by the top of this C-wave. Silver has already reached that level and gold tagged $1575 yesterday. This has unfolded in only the first two daily cycles. The third daily cycle is where the real parabolic gains are going to occur.
The coming parabolic move will be significantly more powerful than what happened in `09 as this will be a final C-wave move. We should easily see a 300- 350 point move in gold and it's anyone's guess as to how far silver rallies during the final parabolic finish. $65 or even $70 isn't out of the question.

Now for the downside. The final dollar collapse is also going to drive the rest of the commodity markets wildly higher. That will include the energy markets. Oil is due for a brief move down into its cycle low this week too. Once that has run it's course we will see oil soar higher, possibly even reaching the `07 high of $150.
$150 oil collapsed the global economy in `07 and the economy was in much better shape with much lower unemployment than it is now. In an environment of already high unemployment $150 oil and soaring food prices are going to drive the global economy into a recession even worse than what we suffered in `08.

Social conflict in the middle east and many emerging economies is going to intensify. People in depressed countries already can't buy food to feed their families, what do you think will be the response if food prices double again?

The world is about to pay the price for Bernanke's attempt to print prosperity and it is going to be a very steep price and cost many lives.
More Here..

John Williams: Hyperinflation and Double-Dip Recession Ahead

The U.S. is really in the worst condition of any major economy or country in the world," he says.


  1. help me put this in perspective.The Banksters slam silver.This drives down the price big time.This enables them to cut their loses by covering and going long.By slammng the price this creates a huge buying spree from the investment sector.The banksters are now long.All of a sudden the price of silver starts to go parablolic on the long side.The banksters now at least on paper have their cake and hit it too.They are now positioned to make huge paper profits on the upside.Damm these scumbags cant lose.This hu

  2. This huge upward surge results in huge physical shortage and just feeds upon itself.The silver price is headed for 3 digits and beyond. Am I getting this right or is my conception of what has and is going to transpired all fucked up.Boy as a rookie in this game Im confused.Someone out there with a better handle on this help me to understand whats transpired sure would help me and other newbies out alot in understanding the dynamics of what is really going on.Thanks


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