The worst is yet to come for Euro

Energy shock coming. 



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No Taper From Fed?

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As predicted here , there was no way that the Fed was going to taper. Just wanted to put a souvenir on the blog. Gold shot up almost 3% while silver shot up more than 3%. Now what do we have to expect from the future then? Of course, precious metals are the place to be. U.S. bonds can be bought for a quick trade. Equities will follow the continued balance sheet expansion upwards. Cash is the worst you can have in your pockets as the U.S. dollar will drop, especially with the increase of the debt limit soon.
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Potemkin Rally

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The Potemkin Villages were Russian constructions, created to deceive others into thinking something is better than it really is. The Potemkin Rally describes how the Federal Reserve is manipulating the market in order to create a deception of a rising stock market. It looks like the economy is improving, but it's actually just a mirage. As long as the following chart (stocks divided by Fed Balance Sheet) stays flat, the stock market rally is really engineered by the Federal Reserve. If the Federal Reserve takes the punch bowl away, everything collapses. I read about a very unusual correlation at  Zerohedge . Apparently, there is a similarity between the  employment to population ratio  (red graph) and the  Potemkin Rally  (blue graph). (The Potemkin Rally graph measures the ratio between the stock market and the Fed's Balance Sheet.) There are implications if this correlation is true. It means that when the U.S. government prints money (otherwise known as QE), t...
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