Week in review – and some other news too.

Buy Gold Buy SilverIt makes me happy that my readers and clients are so smart and on top of the “news” (in quotes – I think you understand why).  One question I probably got asked to me a dozen times was/is: “what will happen to gold [silver] should China stop buying our treasuries?” Another, which I’ve gotten a couple times of the recent weeks, why did I stop the week in review posts.  So, I’ll take on both questions here.

Let’s take at look at how the markets did during this “s-hole” week.

Gold opened the week at $1,319, which is good news, we haven’t seen the $1300’s in a few weeks. We saw gold trade as high as $1,340 and as low as $1,308, closing the week at $1338, up $19 for the week. Gold support is now at around $1,330 then $1,310, and then $1,290, resistance $1,350, then $1,3625, and then $1,380.

Silver pened the week at $17.13, good to see it over $17 (before long $17 is going to seem like pennies when to compared to where I see silver going – take advantage of it). We saw silver trade as high as $17.31 and as low as $ 16.86. Silver closed the week at $17.31, up $0.28 for the week.  Silver support  $17.25, then $17.10, and then $16.85 with resistance around $17.50, then $17.75, and then $17.97.

The DJIA opened the week at approximately 25247.53, closed at a record 25803.23, up a crazy 555.70 for the week. The bigger they are the harder they fall.

The US Dollar opened at 91.66, closed at 90.62, down 1.04 for the week. That’s not good and it’s going to get worse.

Oil opened at $61.70, closed at $64.40, up $2.70 for the week. Not good for the prices at the gas pump.

If you haven’t heard the news, the president allegedly called a few countries a name that…well, we’ll be hearing this story for a very long time, I don’t need to repeat any of it. Other news will have to take a backseat, such as China recently saying that they are waning off buying our debt via our treasuries.

First, do I think China will make this happen? Yes, I think that they will, IF they need us to act in a certain way.  China has been cutting back little by little over the last few years, but not enough to cause to stir over all.  To be perfectly honest, we will cave to China’s will before they stop buying our debt.  With all the tax funded programs we have now and the new ones that seem to be on the horizon, how else will be pay for it not, if we don’t selling debt to others to be “repaid” (yeah right!) much later. It’s a stupid vice we have gotten ourselves into over greed and corruption. We are over $20,000,000,000,000 in debt and it’s getting bigger and will until it blows up or we do. I hate to put it that way but it’s true. Do you not this China is going to get their money back in someway? We owe the over $3,000,000,000,000.

Debtors are slaves to those they are indebted to, fact, end of story.

Should China stop buying our debt, odds are many others will follow suit.  If others follow China’s lead or not, we will find some other country that we own already to put the numbers on their books, that will buy us some time.  Should China stop buying our debt the dollar will fall, gold and silver will go up.  That we can count on.  We saw gold jump at the hint of the potential cessation, imagine what could happen if China does stop.

To be 100% honest, as screwed up as the markets are right now, anything is possible. The DJIA, case and point.

Japan is the second largest holder of our debt and their economy is a joke! Japan also said that they have to “trim” their purchasing of our debt. That hint, along with China’s dropped the dollar nearly half a point. Pressure on the dollar typically sends gold up. Today was no exception.

The dollar’s rule is coming to an end. It seems to be China’s time to run the roost for…it’ll be a long time once they take us over and they are close to it.

Times are changing.  If you believe it or not the world is being lead to believe that our president is incompetent.  If it’s true or lies, the damage is being done to this administration. This damage can fall back to the dollar by association.  It’s a hard spot to be in, those who feel this president is unfit to serve in the elected office is hurting our image around the world. Frankly, he may not be helping matters by saying anything that he may not want touted all over the news. If he is “like, really smart” he should know not to say anything to anyone that he does not want leaked. Doesn’t look like he can trust anyone. Regardless, he has to be better with his words.  All of this does over shadow the anything good that he may do or have done. The more he does that’s along lines with his campaign promises, the more the media will find to try to harm him in any way. That seems to be the trends.  Then we have to argue what good has he done, if anything, blah blah, that’s not where I am taking this.

What good this administration has done or whatever damage you feel it has done is not the question.  How it all effects the markets, the domestic and global economy is.  Yes, I know it all mixes and merges at places…the point is, you and I have no control over any of it right now, all we can do is protect our own financial future as best we can.

Changes are coming. Do you have insurance?

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