Past week most world indices are up. The Dow Jones industrial average .DJI was up 47. 23
points, or 0 .37 percent, at 12,810 . 54. The Standard
& Poor' s 500 Index . SPX was up 3 .13 points, or.
0. 23 percent, at 1 ,363 .61 . The Nasdaq Composite
Index .IXIC was up 1 .01 points , or 0 .04 percent, at
2, 873 .54. (N ).
As for the USD, investors are on a dumping spree while the S&P has downgraded the feds AAA credit souvereign rating.
I think its just a matter of time before the the feds start defaulting on their debt. And with the Chinese holding more than 90% of this debt i'm seeing trouble coming.

If the BRIC's & G20's move of getting a new world currency goes through as they are now being seriously listened to worldwide, i'm seeing the US in trouble as these are the guys holding the largest chunks of their debt.
The only thing sustaining the US economy as of now is their monopoly of printing the greenback.

Currency markets saw a rebound in the Dollar after the US President announced that Osama bin Laden was killed by US military in Pakistan. The Yen fell against most currencies on this news snapping gains against major currencies with the Dollar being the strongest among all. Asian markets gained, Treasury markets moved upwards, Gold, Silver declined and Crude oil fell from the 31-month highs. The threat of terrorism is seen as subsiding after bin Laden’s death in the markets which is giving rise to risk-appetite, selling of the Yen and more people buying the US Dollar.
ac-markets.com

http://www.youtube.com/watch?v=GTQnarzmTOc

Nice musical video depicting Keynesian economics vs. Austrian economics...

http://www.youtube.com/watch?v=6esIMMrLB-o

http://www.youtube.com/watch?v=OafenSoQ0lA

In 1981 a movie called Rollover was released. This is the closest I can figure out of the coming 'event'...

http://www.youtube.com/watch?v=KUsj7EdZigM

And the Finnish guys tells the EU and ECB to shove it when it comes to Portugal and Greece additional bailouts...

http://www.reuters.com/a...s-idUSHEL01013520110502

And the side shows of April were...

1. Jap gubberment admits the nuclear accident is a Chernobyl, but bigger! And orders no news to be updated except by it or Tepco. Youtube has done a 'good' job of clearing most videos...
2. US congress can't decide about their debt budget.
3. S&P downgrade US debt outlook to negative.
4. PIMCO - largest global bond fund manager sells out of US bonds and suggests shorting it.
5. Portugal's gubberment finally admits it is in dire straits after discovering that lies are costly...
6. Iceland in their 2nd referendum vote to denounce taxpayers from paying Icesave's debts by bailouts from British and Dutch gubberments...
7. Ireland gubberment downgrades their GDP outlook after their calculation fudging GDP model fails...
8. A Citigroup trader is summoned for rumour mongering on the Greece CDS default eventuality.
9. EU opens CDS fraud investigations into the activities of the big global banksters...
10. Gold/silver prices at records highs, oil following closely and soft commodities too with major food inflation in the process.
11. US Fed bank chair - The Bernank - gives a press conference for the first time since the Fed was formed in 1913 to reassure the global investors that US will pay back its debts and there's no inflation (actually need more inflation) and the US dollar is very stable and durable paper made of bamboo pulp...
12. World Bank/IMF issue a report stating that China will be the largest economy by 2016 surpassing the US.

And so many more that others can add... The best statement since 2011 is by ECB on how Eurozone GDP is now almost fully recovered thus rates need to be hiked to curb inflation, yet we have 4 members looking at possible defaults...

Who needs movies and series sequels for entertainment with all these fabolous act shows free on air and the internet...

Exactly one year ago, US investors almost died of a heart attack as they watched the Dow Jones (DJIA) crash down 1000 points in a span of 20 minutes. It is interesting to read the anniversary note from CNN Money... http://money.cnn.com/201...s/flash_crash/index.htm

Since the article is cautious and a cursory look at the major lame stream media sites and TV financial session indicate the same, I can bet this is a signal of seeing DJIA shoot up above 14,000 by year end! If QE3.0 is unleashed in Q3, then 20,000 is possible?! So, am I bullish. Nop. Never will be on the 1st world markets until the fraud and money printing stock buying support is stopped. Imagine CBK printing money to buy up NSE stocks e.g. bluechips like Safcom, EABL etc via PDs (primary dealers) who make the bond market then use the proceeds to buy up stocks using their trading desks... Is this why we are also going to have PDs who happen to be JP Morgan, HBSC etc... Hmmm....

It's Time For Africa: http://www.cnbc.com/id/42932022

OMG: Oh my, Gold!

That sure didn't take long. Gold pulls back to $1,500 and we're already asking whether it is a bubble on the verge of popping.

Compared to other assets, gold isn't too bubblicious. But that sure doesn't mean price cannot drop significantly. This morning I listened to a Reuters interview with two commodities analysts discussing their individual outlook for gold - one a bull, one a bear.

The bear led things off, citing what might change among the major drivers of gold prices. He correctly listed what I would say as the three main drivers: US dollar via low interest rates, quantitative easing, and demand from emerging market central banks due to swelling surpluses in their capital and trade accounts. Naturally, if these trends change direction then gold's appeal likely changes too.

The bull cited all the same reasons, naturally, as justification for a continued climb in the price of gold.

And there it is: choosing between two extremes.

The bull didn't offer an up-side price target for gold ... only that he feels nothing has changed to stop it from running higher.

The bear offered up $750 an ounce as his downside target.

Whoa ... wait a second. Gold down to $750? That's more than 50% off current levels. [Perhaps unrelated, but there is also something else currently going for 50% off that you might want to check out when you have a free moment.]

Back to gold - could that analyst be anywhere in the ballpark calling for a move down to $750?

Yes. Sure.

But the bullish analyst sticking to his guns has a point - what has changed besides perhaps investor sentiment?

Yes, I know sentiment can influence fundamentals, etc etc ... but quantitative easing is still in play and we don't yet know what the Federal Reserve has up its sleeve if the US economy is not hitting its growth in stride once QE2 expires; plus, the US dollar remains the funding currency of choice in what has become a very speculative trend for asset markets.

If anything, gold is tied to a general distaste for fiat currencies and should remain supported if developed market central banks don't adopt a monetary-policy-normalization mindset - a lid remains on US interest rates; and there are some serious threats being tossed around the eurozone that could quickly undermine the euro.

This morning a reader of ours passed along his technical outlooks for the US dollar and gold. As he noted, his outlook for gold is almost perfectly dependent upon his outlook for the US dollar. And for whatever reason, he sees the US dollar index running to about 107 by the first quarter of next year. As for gold, he would then expect a corresponding move to $500 an ounce.

Yes, you read that correctly.

But I don't necessarily think the US dollar and gold will be a perfect inverse trade, in the way the US dollar and the euro are nearly perfectly negatively correlated. That means $500 an ounce certainly is not on my radar screen right now even if something drastic changes in the eurozone that kills the euro and supports the US dollar.

But I realize I am just splitting hairs here. Right now, if I had to pick an extreme, I still side with the bullish arguments favoring gold and many other commodities. An old market adage goes something like this, "Sell when everyone else is buying, and buy when everyone else is selling."

Everyone was selling last week. Perhaps it is time to buy.

But one thing is for sure - this is a time to keep your exposure and leverage in check.

Have a great week.

Author:Jack Crooks, He is Black Swan Capital LLC, President and Chief Trading Officer.

@Ceinz - precious metals will keep up the bull run as long as central banks are on a laserjet money printing spree. A lot worthless paper is the end result.

@erifloss - Good to see you also noted the April sideshow headlines. Defense spending needs to be stopped if US is to pay up its overswelled debts. Plus repatriation of their globalized manufacturing jobs given to china. But a global economy system reset would have a better chance of remeding the current ponzinomics game.
Btw read about the plight of chinese workers at fornoxx and their anti-suicide contracts. When shopping for an ipad or iphone spare some thought for them.

And now for the gubberment lie index I keep tabs on esp the 1st world, the article below would have moved this index not less than 10% today. But this index works outside this planet since deceit is the norm and a necessary ingredient for global political & monetary systems on earth...

http://blogs.wsj.com/bru...lies-on-secret-meeting/

http://euobserver.com/9/32222

Meanwhile, German exports rise to all-time high http://www.bbc.co.uk/news/business-13330882