JPY saw a massive correction today – gaining 3% against the USD – its biggest single-day gain since May 2010 – dragging all the carry traders with it. S&P 500 futures volume exploded to its highest since the rally began in November as it broke its uptrend and slumped 40 points from its intraday highs. VIX’s term structure collapsed to its flattest in 18 months as spot surged above 19% (no – everyone wasn’t hedged). The Dow, S&P, and Nasdaq are all red for the month and even the Trannies are almost unch. Treasuries soared with 10Y ending -10bps (after being +4bps at its worst of the day). Gold and Silver surged(with the latter testing near $1600 again) as WTI dropped 1%. Homebuilders (not helped by lumber’s price collapse) dropped 3.5% but every sector was ugly today and closed at its lows.
S&P futures lost their gains for Feb, broke their uptrend dramatically on heavy volume and large trade size, and are heading towards QE3 levels…
read more http://www.blacklistednews.com/Market_Plunges_As_European_Crisis_Is_Back/24436/0/38/38/Y/M.html
If the Masses Lose Confidence in the Currency…
At a recent meeting of the American Economic Association a vote was held about whether or not the United States should back its currency with gold. Not surprisingly, 100% of mainstream economists educated by our most prestigious universities were against such a measure.
From the top down, there is a cult-like belief that our paper monetary system is absolute and infallible.
Yet, as we have seen throughout history, and especially in the last decade, currencies backed by nothing are always debased, eventually being worth even less than the paper they’re printed on.
If you’re one of those contrarians who happens to believe, like investment guru Jay Taylor, that market manipulation is rampant and the only reason why our ‘best and brightest’ continue to promote the legitimacy of paper currencies is to maintain a perception of stability in a crumbling monetary system, then the following interview from the Sound Money Campaign is a must watch.
Taylor discusses his thoughts on the importance of hard assets, the meaning of real value, investment strategies, and international diversification to avoid a government whose aim is to punish those who will survive and thrive when things turn sour.
Moreover, Taylor delves into the real reason for why the Federal Reserve and leading mainstream economists continue to push policies that led to the financial meltdown of 2008 and why those policies will eventually lead to something much, much worse :
I think more than that is the talk that comes out of the Fed and the establishment… I think that, in part, is to keep people believing in the integrity of a system that doesn’t have much else going for it other than talk.
Because the debasing of currency is relentless.
The Federal Reserve is expanding its balance sheets, it’s creating money out of nothing, it’s devaluing the savings of individuals through the debasement of the currency and through zero interest policies.
They’re just trying to keep people off balance so they don’t bet in one direction in favor of inflation hedges.
They want to keep people believing [inflation] is not going to be a problem. they need to do that in order to keep people believing in the dollar, which they create out of nothing.
So, it’s a giant con game.
In the end, Pinocchio’s nose will be exposed and [free] markets win out