October

I love this month and I hate this month. Before we begin:

U2 - October

"October and the trees are stripped bare
Of all they wear. What do I care?
October and Kingdoms rise and Kingdoms fall
But you go on...and on..."

Against that melancholy backdrop, we take on the day and it's not pretty. First up, that "Dave in Denver" guy has written something that you absolutely must read:

https://truthingold.blogspot.com/2011/10/will-morgan-stanley-be-real-tipping.html

He wrote that yesterday. Now consider this:

https://www.zerohedge.com/news/ms-1-year-cds-hit-800875-curve-massively-inverted

Additionally, there are the problems at Dexia, the largest bank in Belgium, perfectly summarized by Harvey:

"Today we had huge stories which will shape gold and silver for years. The big story of the day and for that matter this quarter, is the huge problems over at Dexia, the largest bank in Belgium. Belgium has no government as nobody want to take over and they have a caretaker government. Dexia bank has total liabilities equal to 180% of GDP of Belgium.

And Belgium is going to nationalize the bank? As of today, Belgium has a debt to GDP of 99%.

Can you imagine what will happen to its Debt to GDP once they assume the liabilities of Dexia?

The situation in Belgium is similar to Iceland except multiply it by a factor of 30 as

Iceland has a population of about 330,000 and Belgium has a population of about 11 million.

Belgium has a GDP of 336 billion Euros and its federal debt is around 333 billion Euros.

The Dexia bank has debt of 604 billion Euros. Add the old debt of the nation at 333 billion Euros on top of Dexia's debt of 604 billion and you have a catastrophe developing."

https://harveyorgan.blogspot.com/

So, is it time to panic? No. At least, not yet. However, like Octobers past, one can clearly see how this can get out of hand very quickly. We've spent considerable time here discussing "the end of the great keynesian experiment" and how you should "prepare accordingly". If you haven't yet prepared, I suggest you visit the "Preparing Accordingly" forum for tips and ideas. In the meantime, it's always a good idea to look around and "think outside the box". Maybe stop by the ATM today and pick up a little extra cash. Maybe call up Provident or Gainesville and order some extra physical. Maybe run by Costco for some extra non-perishables. Maybe. Not sayin. Just sayin that there's a lot of nasty stuff currently bubbling to the surface. Right now is a time when you need to be paying very close attention.

As this pertains to the short-term price of the metals...who knows? As you can see on the charts below, both metals are working themselves into technical corners. Obviously, anything can happen but, if I had to guess, silver looks like it is about to break lower in coordination with a global risk liquidation. $24 is still a possibility. Gold looks better and it should not see as much selling pressure for the obvious, fundamental reasons.

Hang in there. The time is now for sober consideration and planning. Help each other and try to remain a force for good. I'll update as conditions warrant. TF