While we wait to see if Tuesday will play out Happily or Terribly, it's time for today's holiday treat. Designed to accommodate (and offend) nearly everyone, it's RamaHanuKwanzMas!
Not much going on today. The metals aren't going up but at least they're not going down, either. To that end, I thought I'd give you some charts with support levels to watch. As stated yesterday, I do not expect a major selloff here as open interest is already quite low in gold and the RSI is moderately oversold. It is the light volume holiday season, though, so anything is possible. For now, just watch the levels on these charts while you sit back, relax, enjoy some down time and prepare for 2013.
The only item of "news" I'd like you review today is this: https://www.zerohedge.com/news/2012-12-17/charting-us-debt-and-deficit-inception. It's a very well-written piece from ZH that details the history of debt-to-GDP in America. The entire article is noteworthy but I've taken the liberty of a C&P of a few of the salient bullets. Gee, where have you heard these before?...
- This is not a political issue: politicians on both sides of the aisle are perfectly aware that setting the US on a sustainable fiscal course would mean massive pain for the common citizen, and an immediate termination of all existing political careers: after all the myth of the welfare state is at stake. It is in everyone's interest - both GOP and Democrat - to perpetuate the unsustainable deficit status quo indefinitely. Any theatrics out of the GOP demanding fiscal conservatism are therefore just that - theatrics.
- There is no question that it is unsustainable: US GDP is currently growing at a pace of 1.5%-2.5% at best. Total 2012 US debt will have risen at a rate of 8%, and will continue rising in the 6%-8% range.
- More disturbing is the influence of the Fed, whose policy of ZIRP and outright debt monetization (recall even JPM has now admitted the Fed will monetize all US debt issuance in 2013) is the only permissive factor that has allowed the US to delay the inevitable moment of reckoning as long it has.
- Indicatively, a modest rise in the average US interest rate, which is currently at all time blended lows, to just 5%, would mean that in 3 years the US would spend, pro forma, $1 trillion in cash interest each year. At that point the US will approach Japan status, where the government needs to borrow just to fund interest outlays. Actually, instead of Japan, Weimar would be a better analogy.
Just a couple of other items before I conclude this brief post (MrsF has designs on my time again today).
- I'd like to personally thank again all who have "donated" money to the site (me) this year. Each gift is invaluable, regardless of size, as it helps defray the cost of the site and compensates me for my time and effort. A special thank you, too, to all of you who automatically donate a few dollars each month through the recurring donation button. Your ongoing support is greatly appreciated. Additionally, at tax time, it is vitally important that you realize your donations to TFMR are NOT tax deductible. TFMR is most certainly a for-profit endeavor and your donations are only considered gifts toward the cause. (To that end, please be sure to remember TFMR in your will and other estate planning methods ) (that's a joke, btw)
- I also want to thank our "sponsors" for their ongoing support, which is equally vital in keeping the site online. Santa's company TRX, MiningStockValuator.com, JMBullion and Provident Metals all sponsor this site and deserve your support and attention. Google also places ads on this site and that is a significant source of revenue, too.
- If you're still looking for gift ideas for that Turdite in your life, please be sure to visit the TurdMart by clicking this link: https://www.tfmetalsreport.com/store. From there, you can also be directed to Amazon where anything you buy, after being sent there from this site, generates a small commishkey for moi. Also, there are still plenty of t-shirts available at this site: https://www.ebay.com/itm/330840151512?var=&ssPageName=STRK:MESELX:IT&_trksid=p3984.m1555.l2649. The site makes $5 for every shirt purchased so please consider stuffing a few stockings with this lovely item.
So, there you go. I see that in the time it has taken me to write this up, the metals have seen another algo-induced plunge. <Yawn>. Just watch the levels I gave you and relax. It's RamaHanuKwanzMas! Smile and be happy!